In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, 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 part of a broader central banking shift amidst economic challenges and slower domestic growth.
Notably, stablecoins were not mentioned in his remarks, despite being a dominant issue in Seoul's policy debate, with lawmakers discussing 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 supplementary and competitive manner. His speech outlined a bank-led model, where the central bank would issue a central bank digital currency, and commercial banks would provide deposit tokens fully convertible into it. Shin argued that any stablecoin issuance should originate from regulated banks.
Additionally, he signaled increased scrutiny of cryptocurrency markets and non-bank finance, with plans to expand monitoring of cryptocurrencies and other non-traditional assets, and seek broader access to data to track financial risks. Shin also pledged to modernize currency markets, including introducing 24-hour foreign exchange trading and an offshore won settlement system.