In his maiden speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who commenced his four-year term, cited the bank's ongoing pilot projects, including Project Hangang for retail CBDCs and deposit tokens, as well as its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements.
He positioned digital currencies as part of a broader central banking evolution amidst 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 deliberating 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 model where the central bank would issue a CBDC, while commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of crypto markets and non-bank finance, seeking expanded access to data to track financial risks.
Furthermore, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.