In his inaugural address, Bank of Korea Governor Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins as the country considers new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing retail CBDC and deposit-token pilot project, as well as its participation in the cross-border tokenization initiative, Project Agorá, led by the Bank for International Settlements.
He positioned digital currency as part of a broader transformation in central banking amid economic challenges and slower domestic growth. Notably, stablecoins were absent from his remarks, despite being a key topic in Seoul's policy debates, with lawmakers discussing the Digital Asset Basic Act, which aims 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 deposit tokens that can be fully converted into it. Shin has argued that stablecoin issuance should be initiated by regulated banks.
Additionally, he indicated that the central bank would enhance scrutiny of crypto markets and non-bank finance, expanding monitoring of cryptocurrencies and other non-traditional assets, and seeking broader access to data to track financial risks. Furthermore, Shin committed to modernizing currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.