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 amidst South Korea's ongoing crypto regulatory discussions. Shin, who assumed office on Tuesday, emphasized the bank's participation in Project Hangang, a retail CBDC and deposit token pilot, as well as Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of the central bank's strategy during a period of economic challenges and sluggish domestic growth. Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy debates in Seoul, with lawmakers considering the Digital Asset Basic Act.
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 fully convertible deposit tokens.
Furthermore, Shin announced plans to increase scrutiny of crypto markets and non-traditional financial institutions, seeking greater access to data to monitor financial risks. He also pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.