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, omitting any mention of stablecoins as South Korea weighs new crypto rules.
Shin, who began his four-year tenure on Tuesday, pointed to the bank’s ongoing retail CBDC and deposit token pilot project, 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 the digital currency as part of a broader shift in central banking during a period of economic stress and slower domestic growth.
The absence of stablecoins was highlighted in his comments. The issue has dominated political debate in Seoul, and lawmakers are considering the Basic Law on Digital Assets, which would set rules for the issuance of stablecoins.
Shin had told lawmakers in 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 in which 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 pointed to closer scrutiny of crypto markets and non-bank finance. He said the central bank would expand monitoring of cryptocurrencies and other non-traditional assets, and seek broader access to data to track financial risks.
Shin also promised measures to modernize foreign exchange markets, including 24-hour foreign exchange trading and an offshore won settlement system.
