In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while notably excluding stablecoins from his remarks as the country considers new cryptocurrency regulations. Shin, who assumed his four-year term, referenced the bank's ongoing retail CBDC pilot, Project Hangang, and its involvement in the cross-border tokenization initiative, Project Agorá. He positioned digital currency as part of a larger shift in central banking amidst economic challenges and slower domestic growth. The omission of stablecoins from his speech was striking, given the current policy debate in Seoul surrounding the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance.
Shin had previously 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 would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. Additionally, Shin emphasized the need for increased scrutiny of crypto markets and non-bank finance, pledging to expand monitoring of cryptocurrencies and other non-traditional assets, as well as seeking broader access to data to track financial risks. He also committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.