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 South Korea considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, emphasized the bank's ongoing participation in the retail CBDC and deposit-token pilot project, known as Project Hangang, as well as its involvement in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of a broader transformation in central banking, particularly during a period of 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 currently 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 speech outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that are fully convertible into it. Shin has argued that any stablecoin issuance should originate from regulated banks. In addition to payments, Shin indicated that the central bank would exert closer scrutiny over crypto markets and non-bank financial institutions.
He stated that the bank would expand its monitoring of cryptocurrencies and other non-traditional assets, seeking broader access to data to track financial risks. Furthermore, Shin pledged to take steps to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.