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 commenced his four-year term, referenced the bank's ongoing retail CBDC and deposit-token pilot, 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 a key component of a broader central banking shift amidst economic challenges and slower domestic growth.
Notably, stablecoins were absent from his remarks, despite being a major topic of policy debate in Seoul, where lawmakers are 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 deposit tokens fully convertible into it. Shin 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 finance, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking broader access to data to track financial risks. Furthermore, Shin committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.