In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who began his term on Tuesday, drew attention to the bank's ongoing pilot projects, including Project Hangang, which focuses on retail CBDCs and deposit tokens, and Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of the central bank's response to 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 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 competitive and supplementary manner. His speech outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that can be fully converted 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 cryptocurrency markets and non-traditional financial institutions, seeking broader access to data to monitor financial risks. He also pledged to introduce reforms to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.