In his inaugural address, Bank of Korea Governor Shin Hyun-song underscored the importance of central bank-issued digital currencies and bank-issued tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's participation in Project Hangang, a retail central bank digital currency and deposit token pilot, and Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of the central bank's strategic shift amidst economic challenges and slower domestic growth. Notably, stablecoins were absent from his remarks, despite being a central issue in Seoul's policy debates, with lawmakers discussing the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance.
Previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a model where the central bank would issue a digital currency, while commercial banks would provide fully convertible deposit tokens.
Shin advocated for stablecoin issuance to originate from regulated banks. Additionally, he signaled the bank's intention to increase scrutiny of cryptocurrency markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and seeking greater access to data to track financial risks. Furthermore, Shin pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.