In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued tokens, while noticeably excluding stablecoins from his discussion, as South Korea considers new cryptocurrency regulations. Shin, who commenced his four-year term, referenced the bank's ongoing pilot projects, including the retail central bank digital currency and deposit token initiative, Project Hangang, and its participation in Project Agorá, a cross-border tokenization effort led by the Bank for International Settlements.
He positioned digital currency as part of a larger transformation in central banking amid economic challenges and slower domestic growth. The omission of stablecoins from his remarks was striking, given the current policy debate in Seoul, where lawmakers are discussing the Digital Asset Basic Act, which would establish rules 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 bank-led model, where the central bank would issue a central bank digital currency, and commercial banks would provide fully convertible deposit tokens. Shin argued that any stablecoin issuance should originate from regulated banks.
In addition to payments, Shin indicated that the bank would increase scrutiny of cryptocurrency markets and non-traditional banking. He stated that the central bank would expand its monitoring of cryptocurrencies and other non-traditional assets, seeking broader access to data to track financial risks.
Furthermore, Shin pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.