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, 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. He positioned digital currency as part of a larger evolution in central banking amidst economic challenges and slower domestic growth. The omission of stablecoins from his remarks was significant, given the current policy debate in Seoul, where lawmakers are discussing the Digital Asset Basic Act, which would 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 speech outlined a model where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that are fully convertible into it, with Shin arguing that stablecoin issuance should originate from regulated banks.
Additionally, Shin indicated that the bank would increase scrutiny of crypto markets and non-traditional finance, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking greater access to data to track financial risks. He also committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.