In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while notably excluding stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing pilot projects, including the retail CBDC and deposit-token initiative, Project Hangang, and its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements.
He positioned digital currency as a key aspect of the central bank's evolving role in a period of economic challenges and slower domestic growth. The omission of stablecoins from his speech was striking, given the current policy debates in Seoul, where lawmakers are discussing the Digital Asset Basic Act, which aims to 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 address outlined a bank-led framework, 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 stablecoin issuance. Additionally, he signaled the central bank's intention to increase scrutiny of crypto markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking broader access to data to track financial risks. Furthermore, Shin pledged to introduce reforms to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.