In his maiden speech, the newly appointed Governor of the Bank of Korea, Shin Hyun-song, emphasized the importance of central bank-issued digital currencies and bank-backed tokens, omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin highlighted the bank's participation in the retail central bank digital currency and deposit token pilot project, known as Project Hangang, and its involvement in Project Agorá, a global tokenization initiative led by the Bank for International Settlements.
He positioned digital currencies as a key aspect of the central bank's strategic shift during a period of economic challenges and sluggish domestic growth. Notably, Shin's address did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers currently considering the Digital Asset Basic Act, which aims to 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. The governor outlined a bank-led model, where the central bank would issue a digital currency, while commercial banks would provide fully convertible deposit tokens.
Furthermore, Shin indicated that the central bank would increase its scrutiny of crypto markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets to better track financial risks. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.