In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, but notably excluded stablecoins from his discussion, as South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail central bank digital currency and deposit token pilot project, as well as its participation in a global cross-border tokenization initiative. He positioned digital currency as part of a larger transformation in central banking, driven by economic challenges and slower domestic growth.
The omission of stablecoins from his remarks is significant, given the current policy debate in Seoul surrounding the proposed Digital Asset Basic Act, which would establish guidelines 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.
In his speech, he outlined a model where the central bank would issue a digital currency, while commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of cryptocurrency markets and non-traditional financial institutions, seeking expanded access to data to track potential financial risks. Additionally, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore settlement system for the Korean won.