In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's ongoing Project Hangang, a retail CBDC and deposit-token pilot, as well as 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, Shin's remarks excluded stablecoins, a topic currently dominating policy discussions in Seoul, where lawmakers are deliberating the Digital Asset Basic Act, which would establish rules for stablecoin issuance. 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 would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. Additionally, Shin announced plans to increase scrutiny of crypto markets and non-bank finance, expand monitoring of cryptocurrencies and other non-traditional assets, and enhance access to data for tracking financial risks. He also pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.