In his inaugural address, 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 the country considers new cryptocurrency regulations. Shin, who began his term, emphasized the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in Project Agorá, a global tokenization initiative. He positioned digital currency as a key aspect of central banking amidst economic challenges and slower growth.
Notably, stablecoins were not mentioned, despite being a major policy topic in Seoul, where lawmakers are discussing the Digital Asset Basic Act. Previously, Shin suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. The governor outlined a model where the central bank issues a CBDC, and commercial banks provide fully convertible deposit tokens.
He also emphasized the need for regulated banks to lead stablecoin issuance. Additionally, Shin announced plans to increase scrutiny of crypto markets and non-bank finance, expand monitoring of cryptocurrencies, and improve access to data for tracking financial risks.
The central bank will also modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.