In his inaugural address, 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 considers new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to 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 component of the central bank's strategic response to economic challenges and sluggish domestic growth.
Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers currently reviewing the Digital Asset Basic Act, which aims to 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 framework in which the central bank would issue a CBDC, while commercial banks would provide deposit tokens that can be fully converted into the CBDC. Shin has advocated for stablecoin issuance to be initiated by regulated banks.
In addition to payments, Shin indicated that the central bank would increase its scrutiny of crypto markets and non-bank financial institutions, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to assess financial risks. Furthermore, Shin pledged to implement reforms to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.