In his maiden speech, 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 ongoing discussions on new cryptocurrency regulations in South Korea. Shin, who commenced his term, highlighted the bank's participation in the retail CBDC pilot project, Project Hangang, and its involvement in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements. He positioned digital currencies as part of a broader transformation in central banking during a period of economic challenges and slower domestic growth. Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy debates in Seoul, with lawmakers considering the Digital Asset Basic Act 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 deposit tokens that can be fully converted into it, with Shin advocating for regulated banks to initiate any stablecoin issuance. Additionally, Shin indicated that the central bank would increase scrutiny of crypto markets and non-bank finance, expanding monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.