In his maiden speech, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins amidst South Korea's ongoing deliberations on new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing pilot projects, including Project Hangang for retail CBDC and deposit tokens, as well as its participation in 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 strategic shift during a period of economic challenges and slowing domestic growth. Notably, Shin's remarks excluded stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers considering the Digital Asset Basic Act to establish rules 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 model, where the central bank would issue a CBDC, while commercial banks would provide deposit tokens that are fully convertible into it. Shin has advocated for regulated banks to take the lead in stablecoin issuance. Additionally, Shin indicated that the central bank would increase scrutiny of crypto markets and non-bank finance, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks.
He also pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.