In his maiden speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and bank-issued deposit tokens, without mentioning stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who began his term, referenced the bank's retail CBDC and deposit-token pilot project and its participation in a cross-border tokenization initiative. He positioned digital currency as part of a larger central banking shift during a period of economic challenges and slower growth.
Notably, stablecoins were absent from his remarks, despite being a key topic in Seoul's policy debates, with lawmakers discussing the Digital Asset Basic Act. Shin had previously stated that stablecoins could coexist with CBDCs and deposit tokens in a complementary and competitive manner.
His speech outlined a model where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of crypto markets and non-bank finance, and pledged to modernize currency markets, including 24-hour foreign exchange trading.