Bank of Korea’s new governor Shin Hyun-song used his first official address to put central bank digital currencies (CBDCs) and bank-issued deposit tokens front and center — while noticeably sidestepping stablecoins as South Korea advances new crypto rules.
Shin, who began a four-year term on Tuesday, highlighted the Bank of Korea’s ongoing retail CBDC and deposit-token pilot, Project Hangang, and reaffirmed the bank’s participation in Project Agorá, a Bank for International Settlements–led effort exploring cross-border tokenization. He framed these moves as part of a broader evolution in central banking amid sluggish domestic growth and mounting economic pressures.
A conspicuous omission in Shin’s remarks was any direct reference to stablecoins — a topic that has dominated Seoul’s policy debate as lawmakers consider the Digital Asset Basic Act, which would set rules for stablecoin issuance. At his confirmation hearing he had suggested stablecoins could “coexist” with CBDCs and deposit tokens in a “supplementary and competitive” role, but his inaugural speech emphasized a bank-centric architecture instead.
Under the model Shin outlined, the central bank would issue a CBDC while commercial banks would distribute deposit tokens that are fully convertible into that CBDC. He also reiterated his view that any stablecoin issuance should start with regulated banks, signaling a preference for incumbent financial institutions to lead token-based payment infrastructure.
Shin didn’t limit his focus to payments. He said the Bank of Korea will expand monitoring of cryptocurrencies and other non-bank financial assets, seek broader access to data to better track systemic risks, and pursue modernization of currency markets — including proposals for 24-hour foreign exchange trading and an offshore won settlement system.
Taken together, Shin’s first address suggests the Bank of Korea is prioritizing a controlled, bank-led digital currency framework and stronger oversight of crypto markets as South Korea shapes its next-generation digital-asset rules.
Read more AI-generated news on: undefined/news
