In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank-issued digital currencies and bank-issued tokens, while notably 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 Project Hangang, a retail central bank digital currency and deposit token pilot, as well as Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currencies as part of a broader central banking evolution during a period of economic challenges and slower growth.
The omission of stablecoins from his remarks was striking, given the intense policy debate surrounding the Digital Asset Basic Act, which aims to establish guidelines 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 regulated banks to take the lead in stablecoin issuance. Additionally, he signaled increased scrutiny of cryptocurrency markets and non-traditional financial institutions, with plans to expand monitoring of non-traditional assets and enhance access to data for tracking financial risks. The governor also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore settlement system for the Korean won.