In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any mention of stablecoins as the country considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC pilot project, known as Project Hangang, and its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements, as reported by Chosun. He positioned digital currency as part of a larger transformation in central banking amid economic challenges and slower domestic growth.
Notably, Shin's remarks did not include stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers reviewing 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 bank-led model, where the central bank would issue a CBDC and commercial banks would provide deposit tokens fully convertible into it, with Shin advocating for stablecoin issuance to originate from regulated banks. Furthermore, Shin indicated that the central bank would enhance its monitoring of crypto markets and non-traditional financial institutions, seeking greater access to data to track financial risks. He also pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.