In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst South Korea's ongoing deliberations on new cryptocurrency regulations. Shin, who commenced his term, underscored the bank's ongoing participation in Project Hangang, a retail central bank digital currency and deposit token pilot, as well as its involvement in Project Agorá, an international tokenization initiative led by the Bank for International Settlements.
He positioned digital currency as a key aspect of the central bank's response to economic challenges and sluggish domestic growth. Notably, Shin's remarks excluded 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 in which the central bank would issue a digital currency, while commercial banks would provide deposit tokens that can be fully converted into the central bank's digital currency.
Shin advocated for regulated banks to take the lead in stablecoin issuance. Additionally, he announced plans for increased oversight of cryptocurrency markets and non-bank financial institutions, as well as enhanced data access to monitor financial risks. The governor also pledged to modernize currency markets by introducing 24-hour foreign exchange trading and an offshore settlement system for the South Korean won.