In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, but made no mention of stablecoins, as the country considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing pilot projects, including the retail CBDC and deposit-token initiative, Project Hangang, and its participation in the cross-border tokenization effort, Project Agorá, led by the Bank for International Settlements. He positioned digital currency as part of a broader central banking transformation amid economic challenges and slower domestic growth.
Notably, Shin's remarks omitted stablecoins, a topic dominating policy discussions 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. Furthermore, Shin emphasized the need for closer monitoring of crypto markets and non-bank finance, seeking expanded 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.