In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while omitting any reference to stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, emphasized the bank's ongoing participation in the retail central bank digital currency and deposit token pilot project, known as Project Hangang, 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 a key aspect of the central bank's broader strategy amidst economic challenges and slower 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 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 approach, where the central bank would issue a digital currency, and commercial banks would provide deposit tokens that can be fully converted into it. Shin has argued that any stablecoin issuance should be initiated by regulated banks. Additionally, Shin 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. He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.