In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, noticeably omitting stablecoins as the country considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing Project Hangang, a retail CBDC and deposit-token pilot, and its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as part of a larger shift in central banking amid economic challenges and slower domestic growth. The absence of stablecoins from his address was notable, given the intense policy debate in Seoul surrounding the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance.
Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a 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 lead stablecoin issuance. Additionally, he announced plans to increase scrutiny of crypto markets and non-bank finance, expanding monitoring of cryptocurrencies and seeking greater access to data to track financial risks.
The governor also pledged to modernize currency markets, including implementing 24-hour foreign exchange trading and an offshore won settlement system.