In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, while notably excluding stablecoins from his remarks as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing retail CBDC and deposit token pilot project, as well as its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements. He positioned digital currency as a key aspect of central banking's evolution amidst economic challenges and slower domestic growth.
The omission of stablecoins from his speech was striking, 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. The governor outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. He also emphasized the need for closer monitoring of crypto markets and non-bank finance, and pledged to expand the central bank's access to data to track financial risks.
Additionally, Shin announced plans to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.