In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing retail central bank digital currency and deposit-token pilot project, as well as its participation in a cross-border tokenization initiative.
He positioned digital currency as part of a broader central banking shift amidst economic challenges and slower domestic growth. Notably, stablecoins were not mentioned in his remarks, despite being a dominant issue in Seoul's policy debates. The governor had previously suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner.
His speech outlined a bank-led model where the central bank would issue a digital currency, while commercial banks would provide deposit tokens that can be fully converted into it. Shin also indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-traditional finance, seeking greater access to data to monitor financial risks. Furthermore, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore settlement system.