In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while omitting stablecoins from his discussion, as the country considers new cryptocurrency regulations. Shin, who began his term on Tuesday, referenced the bank's ongoing retail CBDC pilot and its involvement in the cross-border tokenization initiative, Project Agorá. He positioned digital currency as part of a larger shift in central banking amid economic challenges and slower growth.
Notably, Shin's remarks did not mention stablecoins, a topic currently dominating policy discussions in Seoul, where lawmakers are debating the Digital Asset Basic Act. Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a competitive manner. His speech outlined a model where the central bank issues a CBDC and commercial banks provide deposit tokens that can be converted into it, with Shin advocating for regulated banks to lead stablecoin issuance.
The governor also announced plans to increase scrutiny of crypto markets and non-bank finance, expand monitoring of cryptocurrencies, and improve access to data for tracking financial risks. Additionally, he pledged to modernize currency markets through the introduction of 24-hour foreign exchange trading and an offshore won settlement system.