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 the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, emphasized the bank's ongoing pilot projects, including the retail CBDC and deposit-token initiative known as Project Hangang, as well as its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements. He positioned digital currency as a key aspect of the central bank's response to economic challenges and sluggish 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 currently debating 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. In his speech, he outlined a bank-led model in which the central bank would issue a CBDC, while commercial banks would provide deposit tokens that are fully convertible into it, emphasizing that any stablecoin issuance should originate from regulated banks.
Furthermore, Shin indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-traditional banking, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking greater access to data to track financial risks. Additionally, he pledged to introduce reforms to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.