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 discussion, as South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as part of a larger shift in central banking amid economic challenges and slower domestic growth. The omission of stablecoins from his remarks was striking, given their prominence in policy debates in Seoul, where lawmakers are considering the Digital Asset Basic Act, which would 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 speech outlined a bank-led model, where the central bank would issue a CBDC and commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of crypto markets and non-bank finance, and pledged to expand the bank's access to data to track financial risks.
Additionally, he announced plans to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.