In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting stablecoins from his discussion as South Korea considers new cryptocurrency regulations. Shin, who commenced his term, referenced the bank's ongoing pilot projects, including a retail central bank digital currency and deposit token initiative.
He positioned digital currency as a key aspect of central banking's evolution amidst economic challenges and slowing domestic growth. Notably, stablecoins were not mentioned, despite being a prominent topic in Seoul's policy discussions, particularly with regards to the proposed Digital Asset Basic Act. Shin had previously 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 issues a digital currency, while commercial banks provide fully convertible deposit tokens. Additionally, Shin announced plans to increase scrutiny of cryptocurrency markets and non-traditional banking, as well as expand the central bank's access to data for monitoring financial risks. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore settlement system for the Korean won.