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 deliberation on new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's ongoing Project Hangang, a retail CBDC and deposit token pilot, as well as its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key aspect of the central bank's evolution during a period of economic challenges and sluggish domestic growth. Notably, Shin's remarks excluded stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers considering the Digital Asset Basic Act, which would establish guidelines 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 deposit tokens that are fully convertible into it. Shin advocated for regulated banks to take the lead in stablecoin issuance. Furthermore, Shin indicated that the central bank would increase its scrutiny of crypto markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking broader access to data to track financial risks.
Additionally, Shin pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.