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 reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC and deposit-token pilot project, 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 broader transformation in central banking amid economic challenges and slower domestic growth.
Notably, stablecoins were not mentioned in his remarks, despite being a key topic in Seoul's policy debates, with lawmakers discussing 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 advocated for regulated banks to initiate stablecoin issuance.
Additionally, he signaled increased scrutiny of crypto markets and non-bank finance, with plans to expand monitoring of cryptocurrencies and other non-traditional assets, as well as enhance access to data for tracking financial risks. The governor also pledged to modernize currency markets, including introducing 24-hour foreign exchange trading and an offshore won settlement system.