In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, while notably omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin, who commenced his four-year term, drew attention to the bank's participation in Project Hangang, a retail CBDC and deposit-token pilot, as well as 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 evolution, particularly during times of economic challenges and slower domestic growth. The absence of stablecoins in his speech was conspicuous, 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 address outlined a banking-led framework where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. Additionally, Shin emphasized the need for increased scrutiny of crypto markets and non-bank finance, promising expanded monitoring of cryptocurrencies and other non-traditional assets, as well as improved access to data for tracking financial risks.
He also committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.