In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst South Korea's ongoing crypto regulatory discussions. Shin, who commenced his term, highlighted the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in Project Agorá, a global tokenization initiative led by the Bank for International Settlements.
He positioned digital currency as a key aspect of central banking evolution during a period of economic challenges and sluggish domestic growth. Notably, stablecoins were absent from his remarks, despite being a major topic in Seoul's policy debates, with lawmakers considering the Digital Asset Basic Act to establish stablecoin issuance regulations.
Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a bank-centric model, where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens.
Shin advocated for regulated banks to take the lead in stablecoin issuance. Furthermore, he indicated that the central bank would intensify its scrutiny of crypto markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets to better track financial risks. Additionally, Shin pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.