In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins amidst South Korea's ongoing deliberations on new cryptocurrency regulations. Shin, who assumed his four-year term, drew attention to the bank's ongoing pilot projects, including the retail central bank digital currency and deposit-token initiative, Project Hangang, as well as its participation in Project Agorá, a global tokenization effort.
He positioned digital currency as a key component of a broader central banking shift, particularly during times of economic uncertainty and sluggish 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 considering legislation that would 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 where the central bank would issue a digital currency, while commercial banks would provide deposit tokens that are fully convertible into it, emphasizing that any stablecoin issuance should originate from regulated banks.
Additionally, Shin indicated that the central bank would enhance its monitoring of cryptocurrency markets and non-traditional banking, seeking greater access to data to assess financial risks. He also pledged to implement measures to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.