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 remarks as South Korea considers new cryptocurrency regulations. Shin emphasized the bank's ongoing participation in the retail CBDC and deposit token pilot, Project Hangang, and its involvement in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of the central bank's strategic shift during a period of economic challenges and slower domestic growth. The omission of stablecoins from his speech was striking, given the intense policy debate surrounding the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance.
Shin had previously suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led framework where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that are fully convertible into it.
Shin has argued that stablecoin issuance should be initiated by regulated banks. In addition to payments, Shin indicated that the bank would increase its scrutiny of cryptocurrency markets and non-traditional banking. He announced plans to expand monitoring of cryptocurrencies and other non-traditional assets, and to gain broader access to data in order to track financial risks. Furthermore, Shin pledged to take steps to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.