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 the country considers new cryptocurrency regulations. Shin, who began his term, referenced the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements. He positioned digital currency as part of a larger transformation in central banking amid economic challenges and slower domestic growth. Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers debating the Digital Asset Basic Act, which would 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 speech outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that can be fully converted into it. Shin advocated for regulated banks to take the lead in stablecoin issuance. In addition to payments, Shin indicated that the central bank would closely monitor crypto markets and non-traditional financial institutions, seeking greater access to data to track financial risks.
He also pledged to modernize currency markets, including implementing 24-hour foreign exchange trading and an offshore won settlement system.