In his maiden speech as the governor of the Bank of Korea, Shin Hyun-song underscored the importance of central bank-issued digital currencies and deposit tokens offered by commercial banks, omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin, who assumed office on Tuesday, highlighted the bank's pilot projects, including the retail central bank digital currency and deposit token initiative known as Project Hangang, as well as its participation in Project Agorá, a global tokenization effort led by the Bank for International Settlements, as reported by Chosun. He positioned digital currencies as a key aspect of the evolving central banking landscape, particularly during a period of economic challenges and slowing domestic growth.
Notably, Shin's address did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers currently deliberating 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 in which the central bank would issue a digital currency, while commercial banks would provide deposit tokens that are fully convertible into the central bank's digital currency.
Shin has advocated for stablecoin issuance to be initiated by regulated banks. In addition to payments, Shin indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking greater access to data to track financial risks. Furthermore, Shin pledged to introduce measures to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.