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 leaving out any mention of stablecoins as South Korea weighs new crypto rules.
Shin, who began his four-year term 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 central banking during a period of economic strain and slower domestic growth.
The absence of stablecoins from his remarks stood out. The issue has dominated policy debate in Seoul, with lawmakers 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 “supplementary and competitive” manner.
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 into it. Shin has argued that any stablecoin issuance should begin with regulated banks.
Beyond payments, Shin signaled closer scrutiny of crypto markets and non-bank finance. He said the central bank would expand monitoring of cryptocurrencies and other nontraditional assets, and seek broader access to data to track financial risks.
Shin also pledged steps to modernize currency markets, including 24-hour foreign exchange trading and an offshore won settlement system.