In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, emphasized the bank's ongoing participation in Project Hangang, a retail CBDC and deposit-token pilot, as well as Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of a broader transformation in central banking, driven by economic challenges and slower domestic growth.
Notably, Shin's remarks did not mention stablecoins, a topic currently dominating policy discussions in Seoul, where lawmakers are debating the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance. Previously, Shin had suggested that stablecoins could coexist with CBDCs and deposit tokens in a competitive and supplementary capacity. His speech outlined a bank-led model, where the central bank would issue a CBDC, and commercial banks would provide deposit tokens that can be fully converted into the CBDC. Shin argued that stablecoin issuance should be initiated by regulated banks.
In addition to payments, Shin indicated that the central bank would increase scrutiny of cryptocurrency markets and non-traditional financial institutions, expanding its monitoring of cryptocurrencies and other non-conventional assets, and seeking broader access to data to track financial risks. Furthermore, Shin pledged to modernize currency markets, introducing 24-hour foreign exchange trading and an offshore won settlement system.