In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while notably not mentioning stablecoins, as South Korea considers new cryptocurrency regulations. Shin, who assumed his four-year term, referenced the bank's ongoing retail CBDC pilot, Project Hangang, and its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements. He positioned digital currency as a key aspect of the evolution of central banking amidst economic challenges and slower domestic growth. The omission of stablecoins from his remarks was striking, given their prominence in policy discussions in Seoul, where lawmakers are debating the Digital Asset Basic Act, which aims to establish guidelines 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, and commercial banks would provide deposit tokens that are fully convertible into it, with Shin advocating for stablecoin issuance to originate from regulated banks.
Additionally, Shin indicated that the bank would increase its scrutiny of crypto 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.