In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued deposit tokens, without mentioning stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who began his term, referenced the bank's ongoing pilot projects, including retail CBDCs and deposit tokens, and a cross-border tokenization initiative.
He views digital currency as part of a broader central banking shift amidst economic challenges and slower growth. Notably, stablecoins were absent from his remarks, despite being a key issue in Seoul's policy debates, with lawmakers discussing the Digital Asset Basic Act.
Shin had previously suggested that stablecoins could coexist with CBDCs and deposit tokens. He outlined a model where the central bank issues a CBDC, and commercial banks provide fully convertible deposit tokens.
The governor also announced plans to increase scrutiny of crypto markets, expand monitoring of non-traditional assets, and enhance access to data for tracking financial risks. Additionally, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.