In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank-issued digital currencies and bank-issued deposit tokens, noticeably excluding stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who started his term on Tuesday, referenced the bank's ongoing retail central bank digital currency and deposit token pilot, Project Hangang, and its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key aspect of a broader central banking transformation amid economic challenges and slower domestic growth. The omission of stablecoins from his address was striking, given their prominence in policy discussions in Seoul, where lawmakers are debating the Digital Asset Basic Act, which would establish rules 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 bank-led model where the central bank would issue a digital currency, while commercial banks would provide deposit tokens that are fully convertible into it. Shin has argued that any stablecoin issuance should originate from regulated banks.
Additionally, Shin indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking broader 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.