In his maiden speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin, who commenced his four-year term, underscored the bank's ongoing pilot projects, including the retail central bank digital currency and deposit token initiative, Project Hangang, and its participation in the cross-border tokenization effort, 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 slower growth.
Notably, Shin's address 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 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 are fully convertible into it, emphasizing that any stablecoin issuance should originate from regulated banks.
Additionally, Shin indicated that the bank would increase scrutiny of cryptocurrency markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking broader access to data to track financial risks. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.