In his inaugural address, the newly appointed Governor of the Bank of Korea, Shin Hyun-song, emphasized the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins amidst ongoing discussions about new cryptocurrency regulations in South Korea. Shin, who commenced his four-year term, highlighted the bank's participation in Project Hangang, a retail CBDC 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 transformation in central banking, particularly during periods of economic challenges and slower domestic growth. Notably, Shin's speech did not mention 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 rules for stablecoin issuance.
Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His address outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that are fully convertible into it.
Shin has argued that any stablecoin issuance should be initiated by regulated banks. In addition to payments, Shin indicated that the central bank would increase its scrutiny of crypto markets and non-bank finance, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking broader access to data to track financial risks.
Furthermore, Shin pledged to introduce reforms to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.