In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, while notably omitting stablecoins from his discussion, as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing Project Hangang, a retail CBDC and deposit-token pilot, and its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key aspect of central banking's evolution amidst 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 CBDCs and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led framework where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that are fully convertible into it.
Shin has advocated for stablecoin issuance to be initiated by regulated banks. Furthermore, Shin indicated that the central bank would increase scrutiny of crypto markets and non-traditional finance, and expand its access to data to monitor financial risks. He also committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.