In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, notably excluding stablecoins from his discussion as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the ongoing retail CBDC and deposit-token pilot project, Project Hangang, and the bank's participation in Project Agorá, a global tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key aspect of central banking's evolution amidst economic challenges and slower domestic 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 CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a model where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens.
Furthermore, Shin indicated that the central bank would increase its scrutiny of crypto markets and non-bank finance, expanding its monitoring of cryptocurrencies and other non-traditional assets to better 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.