In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank-issued digital currencies and bank-issued deposit tokens, while notably excluding stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's ongoing involvement in Project Hangang, a retail central bank digital currency and deposit token pilot, as well as Project Agorá, a cross-border 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 a period of economic challenges and slower domestic growth. The omission of stablecoins from his address was striking, given the intense policy debate surrounding the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance.
previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a framework where the central bank would issue a digital currency, while commercial banks would provide deposit tokens that are fully convertible into it. Shin has argued that stablecoin issuance should be initiated by regulated banks. In addition to payments, Shin indicated that the bank would increase its scrutiny of cryptocurrency markets and non-traditional financial institutions, seeking broader access to data to monitor financial risks.
Furthermore, Shin pledged to implement reforms to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.