In his maiden speech, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued tokens, but notably did not mention stablecoins as the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, referenced the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements, as reported by Chosun. He positioned digital currency as a key aspect of the central bank's evolution amidst economic challenges and sluggish domestic growth. The omission of stablecoins from his remarks was striking, given the intense policy debate surrounding the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance.
During his confirmation hearing, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led model, where the central bank would issue a CBDC, while commercial banks would provide fully convertible deposit tokens. Shin has advocated for regulated banks to spearhead stablecoin issuance. In addition to payments, Shin indicated that the central bank would intensify its scrutiny of crypto markets and non-traditional finance, expanding its monitoring of cryptocurrencies and seeking broader access to data to track financial risks.
He also pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.