In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued deposit tokens, while notably excluding stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC and deposit-token pilot project and its involvement in a global tokenization initiative. He positioned digital currency as a key aspect of central banking amidst economic challenges and slower growth.
The omission of stablecoins from his speech was striking, given the intense policy discussions surrounding the Digital Asset Basic Act, which aims to establish rules 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, while commercial banks would provide fully convertible deposit tokens. Shin also indicated that the central bank would closely monitor crypto markets and non-traditional finance, seeking greater access to data to assess financial risks. Furthermore, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.