In his maiden speech, Bank of Korea Governor Shin Hyun-song emphasized 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 started his term on Tuesday, highlighted the bank's ongoing pilot projects, including Project Hangang for retail CBDCs and deposit tokens, as well as its participation in Project Agorá, a global tokenization initiative. He positioned digital currency as a key aspect of central banking's evolution amidst economic challenges and slower growth.
Notably, Shin's speech did not mention stablecoins, a topic currently dominating policy discussions in Seoul, where lawmakers are reviewing the Digital Asset Basic Act to establish rules 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 model where the central bank would issue a CBDC, while commercial banks would offer deposit tokens that can be fully converted into the CBDC. Shin advocated for regulated banks to take the lead in stablecoin issuance.
Additionally, he announced plans to increase scrutiny of cryptocurrency markets and non-bank financial institutions, expanding the bank's monitoring of cryptocurrencies and other non-traditional assets to better track financial risks. Shin also pledged to modernize currency markets by introducing 24-hour foreign exchange trading and an offshore won settlement system.