In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while notably omitting stablecoins from his discussion, as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements.
He positioned digital currency as a key component of the central bank's strategy amidst economic challenges and slower domestic growth. The absence of stablecoins from his remarks was conspicuous, given the current policy debate in Seoul surrounding 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 bank-centric model, where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. Additionally, Shin indicated that the central bank would increase its monitoring of crypto markets and non-traditional banking, seeking greater access to data to assess financial risks. He also pledged to modernize currency markets by introducing 24-hour foreign exchange trading and an offshore won settlement system.