In his first official speech, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank-issued digital currencies and bank-backed tokens, omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin, who commenced his four-year term, highlighted the bank's involvement in pilot projects such as Project Hangang, focusing on retail central bank digital currencies and deposit tokens, as well as Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements.
He positioned digital currencies as a key component of the central bank's strategic response to economic challenges and slowing domestic growth. Notably, Shin's address did not mention stablecoins, a topic currently dominating policy discussions in Seoul, where lawmakers are considering the Digital Asset Basic Act to establish guidelines for stablecoin issuance.
previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a framework where the central bank would issue a digital currency, while commercial banks would provide fully convertible deposit tokens. Additionally, Shin announced plans to increase scrutiny of cryptocurrency markets and non-traditional financial institutions, seeking expanded access to data to monitor financial risks. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore settlement system for the South Korean won.