In his inaugural address, the newly appointed Governor of the Bank of Korea, Shin Hyun-song, emphasized the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin highlighted the bank's participation in Project Hangang, a retail central bank digital currency pilot, and Project Agorá, a global tokenization initiative. He views digital currencies as a key aspect of central banking evolution during a period of economic challenges and sluggish domestic growth.
Notably, Shin's speech did not mention stablecoins, a topic currently at the forefront of 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, proposing that stablecoin issuance should be initiated by regulated banks.
The governor also announced plans to increase scrutiny of crypto markets and non-bank financial institutions, expanding the central bank's monitoring of cryptocurrencies and other non-traditional assets to better track financial risks. Furthermore, Shin pledged to modernize currency markets by introducing 24-hour foreign exchange trading and an offshore won settlement system.