In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, without mentioning stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who began his four-year term, referenced the bank's ongoing retail CBDC and deposit-token pilot, Project Hangang, and 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 larger shift in central banking amidst economic challenges and slower domestic growth. Notably, stablecoins were absent from his remarks, despite being a key issue in Seoul's policy debates, with lawmakers discussing the Digital Asset Basic Act, which would establish rules for stablecoin issuance.
Shin had previously stated 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. Shin also emphasized the need for closer scrutiny of crypto markets and non-bank finance, and pledged to expand monitoring of cryptocurrencies and other non-traditional assets, while seeking greater access to data to track financial risks. Additionally, he promised to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.