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 amidst South Korea's deliberation on new cryptocurrency regulations. Shin, who commenced his term, drew attention to the bank's ongoing retail central bank digital currency and deposit token pilot project, as well as its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements.
He positioned digital currency as a key aspect of the central bank's broader strategy during a period of economic challenges and sluggish domestic growth. Notably, stablecoins were not mentioned in his remarks, despite being a focal point of policy discussions in Seoul, where lawmakers are considering the Digital Asset Basic Act 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 tokens that are fully convertible into it, with Shin arguing that stablecoin issuance should originate from regulated banks. Furthermore, Shin indicated that the bank would increase scrutiny of cryptocurrency markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking greater access to data to track financial risks.
He also committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.