In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank-issued 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, highlighted the bank's ongoing participation in Project Hangang, a retail central bank digital currency and deposit token pilot, as well as its involvement in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as part of a broader transformation in central banking amid economic challenges and slowing 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 debating the Digital Asset Basic Act, which would establish guidelines for stablecoin issuance.
Previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led approach, where the central bank would issue a digital currency, and commercial banks would provide deposit tokens that are fully convertible into it. Shin has argued that any stablecoin issuance should originate from regulated banks.
In addition to payments, Shin indicated that the central bank would closely monitor crypto markets and non-bank financial institutions, expanding its oversight of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks. Furthermore, Shin pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.