In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank-issued digital currencies and bank-issued deposit tokens, notably excluding stablecoins amidst South Korea's deliberation on new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's ongoing participation in Project Hangang, a retail CBDC and deposit-token pilot, and Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements.
He positioned digital currency as a key aspect of central banking evolution during a period of economic challenges and slower domestic growth. The omission of stablecoins from his remarks was striking, given the intense policy debate in Seoul surrounding the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance. Previously, Shin 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 issues a CBDC, while commercial banks provide deposit tokens that are fully convertible into it.
Shin advocated for regulated banks to initiate any stablecoin issuance. Additionally, he signaled increased scrutiny of crypto markets and non-bank finance, including expanded monitoring of cryptocurrencies and other non-traditional assets, as well as enhanced access to data for tracking financial risks. Shin also committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.