In his maiden speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, emphasized the bank's ongoing participation in the retail CBDC and deposit token pilot project, known as Project Hangang, as well as its involvement in Project Agorá, an international 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 times of economic challenges and slower domestic growth. Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers currently reviewing 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 model where the central bank would issue a CBDC, while commercial banks would provide deposit tokens that can be fully converted into the CBDC, with Shin advocating for regulated banks to take the lead in stablecoin issuance. In addition to payments, Shin indicated that the bank would increase its scrutiny of crypto markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking greater access to data to track financial risks. Furthermore, Shin pledged to modernize the country's currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.