In his inaugural speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing retail central bank digital currency and deposit-token pilot project, as well as its participation in a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of a broader transformation in central banking amidst economic challenges and slower 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 contemplating the Digital Asset Basic Act, which would establish rules 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 bank-led model, where the central bank would issue a digital currency, and commercial banks would provide deposit tokens that can be fully converted into it. Shin has argued that stablecoin issuance should be initiated by regulated banks. Additionally, Shin indicated that the central bank would increase scrutiny of cryptocurrency markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks.
He also pledged to modernize currency markets, including implementing 24-hour foreign exchange trading and an offshore won settlement system.