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 as South Korea considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, emphasized the bank's ongoing pilot projects, including the retail CBDC and deposit-token initiative, Project Hangang, and its participation in Project Agorá, a cross-border tokenization effort led by the Bank for International Settlements. He positioned digital currency as a key aspect of the central bank's strategy during a period of economic challenges and slowed domestic growth.
Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers debating the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance. In his confirmation hearing, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. The governor outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that can be fully converted into it, emphasizing that any stablecoin issuance should originate from regulated banks. Furthermore, Shin indicated that the central bank would increase scrutiny of crypto markets and non-traditional finance, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks.
He also pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.