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 began his term on Tuesday, referenced the bank's ongoing retail CBDC pilot, Project Hangang, and its involvement in the cross-border tokenization initiative, Project Agorá. He positioned digital currency as part of a broader central banking evolution amid economic challenges and slowing domestic growth. Notably, Shin's remarks did not mention stablecoins, a topic currently dominating policy discussions in Seoul, where lawmakers are debating the Digital Asset Basic Act.
Previously, Shin 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 fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of crypto markets and non-traditional financial institutions, seeking expanded access to data to track financial risks.
Additionally, he pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.