In his inaugural address, Bank of Korea Governor Shin Hyun-song emphasized the importance of central bank digital currencies and tokens issued by banks, omitting any reference to stablecoins amidst ongoing discussions on new cryptocurrency regulations in South Korea. Shin, who started his term on Tuesday, highlighted the bank's participation in Project Hangang, a retail CBDC and deposit token pilot, and Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key aspect of central banking's evolution during a period of economic challenges and slow domestic growth. Notably, stablecoins were not mentioned in his remarks, despite being a major topic of policy debate in Seoul, where lawmakers are 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 and commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of crypto markets and non-bank financial institutions, seeking expanded access to data to track financial risks.
Additionally, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.