In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-issued deposit tokens, noticeably omitting stablecoins as the country considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing retail central bank digital currency 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 component of a broader central banking transformation amid economic challenges and slower domestic growth.
The absence of stablecoins from his remarks 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 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 central bank digital currency, and commercial banks would provide fully convertible deposit tokens. Shin advocated for regulated banks to initiate stablecoin issuance.
Additionally, he indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-traditional financial institutions, seeking greater access to data to monitor financial risks. The governor also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.