In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while omitting any reference to stablecoins amidst South Korea's deliberation on new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements.
He positioned digital currency as a key component of the central bank's strategic shift during a period of economic challenges and slowing domestic growth. Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers considering 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 bank-led model, where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of crypto markets and non-traditional banking, and pledged to expand the central bank's access to data to track financial risks. Furthermore, he committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.