In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as the country 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 the cross-border tokenization initiative, Project Agorá. He positioned digital currency as a key component of the central bank's strategy amidst economic challenges and slower domestic growth.
Notably, stablecoins were not mentioned in his remarks, despite being a prominent topic in Seoul's policy discussions, particularly with regards to the proposed Digital Asset Basic Act. 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 approach, where the central bank would issue a digital currency, and commercial banks would provide fully convertible deposit tokens. Furthermore, Shin announced plans to increase scrutiny of cryptocurrency markets and non-traditional financial institutions, seeking expanded access to data to monitor financial risks. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore settlement system for the Korean won.