Bank of Korea Governor Shin Hyun-song used his first address in office to prioritize central bank digital currencies (CBDCs) and bank-issued deposit tokens, while omitting any mention of stablecoins as South Korea weighs new crypto regulations.
Shin, who began his four-year term on Tuesday, pointed to the bank’s ongoing retail CBDC and deposit token pilot, Project Hangang, and its role in Project Agorá, a cross-border tokenization effort led by the Bank for International Settlements, according to news outlet Chosun.
He framed digital currency as part of a broader shift in the central banking sector at a time of economic pressure and slower domestic growth.
The absence of stablecoins from his remarks stood out. The issue has dominated political debate in Seoul, where lawmakers are considering the Digital Asset Basic Act, which would set rules for stablecoin issuance.
Shin had told lawmakers at his confirmation hearing that stablecoins could coexist with CBDCs and deposit tokens in a “complementary and competitive” way.
His speech also outlined a bank-led model where the central bank would issue a CBDC, while commercial banks would provide deposit tokens fully convertible to it. Shin has argued that any stablecoin issuance should begin with regulated banks.
In addition to payments, Shin signaled closer scrutiny of crypto markets and non-bank financing. He said the central bank would expand monitoring of cryptocurrencies and other non-traditional assets and seek wider access to data to track financial risks.
Shin also promised steps to modernize foreign exchange markets, including 24-hour currency trading and an offshore won settlement system.
