In his inaugural address, the newly appointed Governor of the Bank of Korea, Shin Hyun-song, emphasized the importance of central bank-issued digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst South Korea's ongoing discussions on new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's participation in Project Hangang, a retail central bank digital currency and deposit token pilot, as well as its involvement in 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 central banking paradigm shift, particularly during a period of economic challenges and subdued domestic growth. Notably, Shin's address made no mention of stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers considering 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 bank-centric model, where the central bank would issue a digital currency, while commercial banks would provide deposit tokens that are fully convertible into it. 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 take steps to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.