In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as South Korea considers new cryptocurrency regulations. Shin, who started his term on Tuesday, drew attention to the bank's ongoing retail central bank digital currency and deposit token pilot project, known as Project Hangang, as well as its participation 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 transformation amidst economic challenges and slower 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 contemplating the Digital Asset Basic Act, which would 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-led model, where the central bank would issue a digital currency, and commercial banks would provide fully convertible deposit tokens. Shin has argued that stablecoin issuance should be initiated by regulated banks. In addition to payments, Shin indicated that the bank would closely monitor crypto markets and non-bank financial institutions, expanding its surveillance of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks. Furthermore, Shin pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.