In his first speech since taking office, Bank of Korea Governor Shin Hyun-sung did not mention stablecoins at all, saying he would prioritize central bank digital currencies (CBDCs) and bank-issued deposit tokens as the country considers new cryptocurrency regulations.
According to news agency Chosun, Shin, who began his four-year term on Tuesday, pointed to his role in Project Hangang, the bank’s ongoing retail CBDC and deposit token pilot, and Project Agora, a cross-border tokenization effort led by the Bank for International Settlements.
He positioned the digital currency as part of broader changes at central banks at a time of economic stress and slowing domestic growth.
Conspicuously, his remarks did not include stablecoins. The issue dominates policy discussions in Seoul, where lawmakers are considering a digital asset basic law that would set rules for stablecoin issuance.
Singh told lawmakers during his confirmation hearing that stablecoins can coexist with CBDCs and allow tokens to be deposited in a “complementary and competitive” manner.
His talk also outlined a bank-led model in which central banks issue CBDCs and commercial banks provide deposit tokens that are fully convertible into CBDCs. Singh argues that stablecoin issuance should start with regulated banks.
Beyond payments, Singh also signaled that he would more closely monitor the crypto market and non-bank finance. He said the central bank will expand its oversight of cryptocurrencies and other non-traditional assets and seek broader access to data to track financial risks.
Mr. Shin also promised measures to modernize the exchange market, including 24-hour foreign exchange trading and an offshore won payment system.
