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 commenced his four-year term, drew attention to the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements.
He positioned digital currency as part of a broader central banking shift amidst economic challenges and slower domestic growth. Notably, stablecoins were absent from his remarks, despite being a dominant topic in Seoul's policy discussions, with lawmakers debating the Digital Asset Basic Act, which would establish rules for stablecoin issuance. Shin had previously stated that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led model, where the central bank would issue a CBDC and commercial banks would provide fully convertible deposit tokens.
Shin advocated for regulated banks to initiate stablecoin issuance. Furthermore, he signaled increased scrutiny of cryptocurrency markets and non-bank finance, with plans to expand monitoring of cryptocurrencies and other non-traditional assets, as well as seek broader access to data to track financial risks. Additionally, Shin pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.