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 began his term on Tuesday, emphasized the bank's participation in Project Hangang, a retail CBDC and deposit-token pilot, and Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements.
He positioned digital currency as a key aspect of central banking amidst economic challenges and slower 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. previously, Shin suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner.
His speech outlined a model where the central bank issues a CBDC, and commercial banks provide fully convertible deposit tokens. Shin also announced plans to increase scrutiny of crypto markets and non-bank finance, expand monitoring of cryptocurrencies and other non-traditional assets, and improve access to data for tracking financial risks. Furthermore, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.