In his inaugural speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as the country prepares to introduce new cryptocurrency regulations. Shin, who assumed office on Tuesday, emphasized the bank's ongoing pilot projects, including Project Hangang, which focuses on retail CBDCs and deposit tokens, as well as its participation 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 response to economic challenges and slowing 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. During his confirmation hearing, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. In his speech, Shin outlined a framework in which the central bank would issue a CBDC, while commercial banks would provide deposit tokens that are fully convertible into the CBDC, emphasizing that any stablecoin issuance should originate from regulated banks.
Additionally, Shin indicated that the bank would increase its scrutiny of cryptocurrency 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 announced plans to modernize the country's currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.