In his maiden speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while notably omitting any reference to stablecoins amidst South Korea's ongoing deliberations on new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's pilot projects, including the retail CBDC and deposit token initiative, Project Hangang, and its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements.
He positioned digital currencies as a key aspect of the central bank's strategic shift in response to economic challenges and sluggish domestic growth. The absence of stablecoins from his address was conspicuous, given the intense policy debate surrounding 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-led framework where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens.
Furthermore, Shin indicated that the central bank would intensify its monitoring of cryptocurrency markets and non-traditional financial institutions, seeking greater access to data to mitigate financial risks. He also committed to modernizing the currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.