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 commenced his four-year term, referenced the bank's ongoing retail CBDC 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 aspect of the central bank's strategy 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 debating the Digital Asset Basic Act, which would establish guidelines for stablecoin issuance. Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner.
His speech outlined a bank-led model, 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 stablecoin issuance to be initiated by regulated banks.
In addition to payments, Shin indicated that the central bank would increase scrutiny of crypto markets and non-traditional finance, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking broader access to data to track financial risks. Furthermore, Shin pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.