In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins as the country 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 the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements. He positioned digital currencies as a key aspect of the central bank's response to economic challenges and slowing domestic growth. Notably, stablecoins were not mentioned in his remarks, despite being a major topic of discussion in policy debates in Seoul, where lawmakers are considering the 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 competitive and supplementary manner. In his speech, he outlined a model in which the central bank would issue a digital currency, while commercial banks would provide deposit tokens that are fully convertible into it, emphasizing that any stablecoin issuance should originate from regulated banks. Additionally, Shin indicated that the bank would increase its monitoring of cryptocurrency markets and non-traditional financial assets, seeking greater access to data to track potential financial risks.
He also pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.