In his maiden speech, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank-issued digital currencies and tokens, while notably omitting stablecoins from his remarks as the country considers new cryptocurrency regulations. Shin, who assumed office on Tuesday, referenced the bank's ongoing pilot projects, including the retail central bank digital currency and deposit token initiative, Project Hangang, as well as its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements. He positioned digital currencies as a key component of the central bank's strategic shift in response to economic challenges and slower growth.
The absence of stablecoins from his speech was conspicuous, given the intense policy debate surrounding the Digital Asset Basic Act, which aims to establish guidelines for stablecoin issuance. Previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a framework where the central bank would issue a digital currency, while commercial banks would provide fully convertible deposit tokens. Shin also emphasized the need for closer monitoring of cryptocurrency markets and non-traditional financial institutions, seeking expanded access to data to assess financial risks.
Furthermore, he pledged to introduce reforms to modernize currency markets, including the implementation of 24-hour foreign exchange trading and an offshore won settlement system.