In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-issued deposit tokens, making no mention of stablecoins as the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, referenced the bank's ongoing retail central bank digital currency and deposit token pilot project, known as Project Hangang, as well as its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements, as reported by Chosun. He positioned digital currency as part of a larger transformation in central banking amid economic challenges and slower domestic growth.
Notably, stablecoins were absent from his remarks, despite being a key topic in policy discussions in Seoul, where lawmakers are considering the Digital Asset Basic Act, which would establish rules for stablecoin issuance. Previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a 'supplementary and competitive' manner. His speech outlined a bank-led model, where the central bank would issue a digital currency, and commercial banks would provide deposit tokens that are fully convertible into it.
Shin has argued that any stablecoin issuance should originate from regulated banks. In addition to payments, Shin indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-bank financial institutions. He stated that the bank would expand its monitoring of cryptocurrencies and other non-traditional assets, seeking broader access to data to track financial risks. Furthermore, Shin pledged to modernize currency markets, including introducing 24-hour foreign exchange trading and an offshore won settlement system.