In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin highlighted the bank's involvement in the retail CBDC and deposit-token pilot program, Project Hangang, and its participation in Project Agorá, a global tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of the central bank's evolving strategy amidst economic challenges and sluggish domestic growth.
Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers reviewing 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-centered model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that can be fully converted into the CBDC.
Shin has advocated for regulated banks to take the lead in stablecoin issuance. Furthermore, Shin indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-bank financial institutions, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to assess financial risks. Additionally, Shin pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.