In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, while noticeably omitting any mention of stablecoins as South Korea considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC and deposit-token pilot project, as well as its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements. He positioned digital currency as part of a broader transformation in central banking amid economic challenges and slower domestic growth. The absence of stablecoins from his remarks was notable, given the current policy debate in Seoul surrounding the Digital Asset Basic Act, which aims to establish rules 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 bank-led model, where the central bank would issue a CBDC and commercial banks would provide deposit tokens that are fully convertible into it.
Shin argued that any stablecoin issuance should originate from regulated banks. In addition to payments, Shin indicated that the bank would closely monitor crypto markets and non-bank finance, expanding its oversight of cryptocurrencies and other non-traditional assets to better track financial risks. He also pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.