Bank of Korea Governor Shin Hyun-song used his first speech in office to prioritize central bank digital currencies (CBDCs) and bank-issued deposit tokens, while leaving out any mention of stablecoins as South Korea mulls new crypto rules.
Shin, who began his four-year term on Tuesday, highlighted the bank’s retail CBDC and deposit token pilot project, Project Hangang, and his role in Project Agorá, a cross-border tokenization effort led by the Bank for International Settlements, according to media outlet Chosun.
He presented digital currency as part of a broader shift at central banks during a period of economic stress and slowing domestic growth.
The absence of stablecoins in his remarks stood out. The issue has dominated political debate in Seoul, with lawmakers considering the Digital Assets Basic Law, which would set rules for issuing stablecoins.
Shin had told lawmakers during his confirmation hearing that stablecoins could coexist with CBDCs and deposit tokens in a “supplemental and competitive” manner.
His speech also outlined a bank-led model, in which the central bank would issue a CBDC, while commercial banks would provide deposit tokens fully convertible to that currency. Shin argued that any issuance of stablecoins should start with regulated banks.
Beyond payments, Shin signaled a closer look at the crypto and non-bank finance markets. He said the central bank would expand oversight of cryptocurrencies and other non-traditional assets and seek broader access to data to track financial risks.
Shin also promised to take steps to modernize foreign exchange markets, including 24-hour currency exchanges and an offshore won settlement system.
