In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, cited 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. He positioned digital currency as part of a broader central banking shift amidst economic challenges and slower domestic growth. Notably, stablecoins were not mentioned, despite being a key issue in Seoul's policy debates, with lawmakers discussing the Digital Asset Basic Act, which would 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 bank-led model, where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of crypto markets and non-bank finance, seeking greater access to data to track financial risks.
Additionally, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.