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 aspect of the central bank's strategic shift in response to economic challenges and sluggish domestic growth. Notably, Shin's speech did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, where lawmakers are deliberating 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 address outlined a bank-led approach, where the central bank would issue a CBDC, while commercial banks would provide deposit tokens that are fully convertible into the CBDC. Shin has advocated for regulated banks to take the lead in stablecoin issuance. In addition to payments, Shin indicated that the bank would intensify its scrutiny of crypto markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking greater access to data to assess financial risks.
Furthermore, Shin pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.