In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued tokens, while notably excluding stablecoins from his remarks. This comes as South Korea is considering new cryptocurrency regulations.
Shin highlighted the bank's involvement in Project Hangang, a retail CBDC and deposit-token pilot, and Project Agorá, a cross-border tokenization initiative. He views digital currency as part of a larger shift in central banking amidst economic challenges and slower growth. The omission of stablecoins from his speech is significant, given the current policy debate in Seoul surrounding the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance.
Previously, Shin suggested that stablecoins could coexist with CBDCs and deposit tokens in a competitive manner. He proposed a bank-led model where the central bank issues a CBDC, and commercial banks provide deposit tokens that can be fully converted into it. Shin also emphasized the need for closer monitoring of crypto markets and non-traditional finance, seeking greater access to data to track financial risks.
Additionally, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.