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, a notable omission given South Korea's ongoing deliberations on new cryptocurrency regulations. Shin, who commenced 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 component of the central bank's response to economic challenges and slower growth. The absence of stablecoins from his remarks is significant, as the issue has been a focal point of policy discussions in Seoul, with lawmakers considering legislation to regulate 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 framework, where the central bank would issue a CBDC, and commercial banks would provide fully convertible deposit tokens.
Shin also emphasized the need for increased scrutiny of crypto markets and non-bank finance, with plans to expand monitoring of cryptocurrencies and other non-traditional assets, as well as enhance access to data for tracking financial risks. Furthermore, he pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.