In his maiden speech as Bank of Korea Governor, Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin, who commenced his term, underscored the bank's involvement 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 currency as a key component of a broader central banking transformation, particularly during a period of economic challenges and sluggish domestic growth. Notably, Shin's speech did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers considering the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance.
Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His address outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that are fully convertible into it. Shin has advocated for regulated banks to take the lead in any stablecoin issuance. Additionally, Shin indicated that the central bank would increase scrutiny of crypto markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks.
He also pledged to introduce measures to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.