In his maiden speech, Bank of Korea Governor Shin Hyun-song underscored the importance of central bank-issued digital currencies and deposit tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's participation in Project Hangang, a retail CBDC and deposit-token pilot, and Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currencies as part of a broader transformation in central banking amid economic challenges and sluggish domestic growth. Notably, stablecoins were not mentioned, despite being a key topic in Seoul's policy discussions, with lawmakers debating the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance.
Shin had previously suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led framework, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that can be fully converted into it. Shin advocated for regulated banks to take the lead in stablecoin issuance.
Furthermore, he signaled increased scrutiny of crypto markets and non-bank finance, with plans to expand monitoring of cryptocurrencies and other non-traditional assets, and enhance access to data to track financial risks. Additionally, Shin pledged to modernize currency markets, including introducing 24-hour foreign exchange trading and an offshore won settlement system.