In his maiden speech, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued deposit tokens, while notably omitting any reference to stablecoins amidst South Korea's ongoing deliberations on new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's participation in Project Hangang, a retail CBDC and deposit-token pilot, as well as its involvement in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of a broader central banking paradigm shift, particularly during periods of economic hardship and sluggish domestic growth.
The conspicuous absence of stablecoins from his speech is 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 bank-centric model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that are fully convertible into it.
Shin has consistently argued that any stablecoin issuance should originate from regulated banks. Furthermore, Shin indicated that the central bank would intensify its scrutiny of crypto markets and non-bank financial institutions, expanding its monitoring of cryptocurrencies and other non-traditional assets, while seeking greater access to data to track financial risks. Additionally, Shin pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.