In his maiden speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-backed deposit tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing retail CBDC pilot project, known as Project Hangang, and its involvement in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements.
He positioned digital currency as a key component of a broader transformation in central banking, particularly during a period of economic challenges and sluggish domestic growth. Notably, Shin's address did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers debating the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance. Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner.
His speech outlined a framework where the central bank would issue a CBDC, while commercial banks would provide deposit tokens that can be fully converted into the CBDC. Shin has argued that any stablecoin issuance should originate from regulated banks. Additionally, he indicated that the central bank would increase its scrutiny of crypto markets and non-traditional financial institutions, seeking greater access to data to monitor financial risks.
Furthermore, Shin pledged to implement reforms to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.