In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, without mentioning stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who began his term, referenced the bank's ongoing retail CBDC and deposit-token pilot, Project Hangang, and its participation in Project Agorá, a cross-border tokenization initiative. He positioned digital currency as part of a larger shift in central banking amid economic challenges and slower domestic growth. Notably, Shin's remarks omitted stablecoins, a topic that has dominated policy discussions in Seoul, with lawmakers considering the Digital Asset Basic Act.
Previously, Shin suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led model where the central bank issues a CBDC and commercial banks provide fully convertible deposit tokens.
Shin also emphasized the need for closer monitoring of crypto markets and non-traditional banking, seeking greater access to data to track financial risks. Additionally, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.