In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any mention of stablecoins as the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, highlighted the bank's ongoing pilot projects, including Project Hangang, which focuses on retail CBDCs and deposit tokens, and Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of the central bank's response to economic challenges and slowing domestic growth. Notably, Shin's remarks did not address stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers currently debating 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. His speech outlined a bank-led approach, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that can be fully converted into the CBDC. Shin has argued that any stablecoin issuance should be initiated by regulated banks.
In addition to payments, Shin indicated that the central bank would increase its scrutiny of crypto markets and non-bank financial institutions, expanding its monitoring 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 introduction of 24-hour foreign exchange trading and an offshore won settlement system.