In his maiden speech as the Governor of the Bank of Korea, Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst South Korea's ongoing deliberations on new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing pilot projects, including the retail central bank digital currency and deposit token initiative, Project Hangang, as well as its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements.
He positioned digital currencies as a key aspect of the central bank's evolving role in navigating economic challenges and sluggish domestic growth. Notably, Shin's address made no mention of 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 guidelines for stablecoin issuance. previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner.
His speech outlined a framework where the central bank would issue a digital currency, while commercial banks would provide deposit tokens that can be fully converted into the central bank's digital currency. Shin has advocated for stablecoin issuance to be initiated by regulated banks. In addition to payments, Shin indicated that the bank would enhance its monitoring of crypto markets and non-bank financial institutions, seeking greater access to data to assess financial risks. He also pledged to take steps to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.