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 amidst South Korea's deliberation on new cryptocurrency regulations. Shin, who commenced his four-year term, highlighted the bank's ongoing retail central bank digital currency and deposit-token pilot project, as well as its participation in a cross-border tokenization initiative led by the Bank for International Settlements.
He positioned digital currency as a key component of a broader central banking paradigm shift during a period of 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 considering legislation that 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 model, where the central bank would issue a digital currency, while commercial banks would provide deposit tokens that are fully convertible into it. Shin advocated for regulated banks to take the lead in any stablecoin issuance. Additionally, Shin indicated that the central bank would increase scrutiny of cryptocurrency markets and non-traditional financial institutions, seeking greater access to data to monitor financial risks.
He also pledged to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.