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 South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC pilot project and its participation in a cross-border tokenization initiative.
He positioned digital currency as a key component of a broader transformation in central banking, driven by economic challenges and sluggish domestic growth. Notably, stablecoins were not mentioned in his remarks, despite being a prominent topic in policy discussions in Seoul.
Shin had previously suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a framework where the central bank would issue a CBDC, while commercial banks would provide fully convertible deposit tokens. The governor also announced plans to increase scrutiny of crypto markets and non-traditional financial institutions, as well as expand the central bank's access to data to monitor financial risks. Furthermore, Shin pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.