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, referenced 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 a key component of the central bank's strategy during a period of economic challenges and slowing domestic growth. Notably, stablecoins were not mentioned in his remarks, despite being a major topic of discussion in Seoul's policy debates, particularly with regards to the proposed Digital Asset Basic Act.
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 fully convertible into it, with Shin advocating for stablecoin issuance to originate from regulated banks.
Furthermore, Shin indicated that the central bank would increase scrutiny of crypto markets and non-bank finance, expanding its monitoring of cryptocurrencies and other non-traditional assets, and seeking greater access to data to track financial risks. Additionally, Shin pledged to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.