As South Korea considers new cryptocurrency regulations, Bank of Korea Governor Shin Hyun-song prioritised central bank digital currencies (CBDCs) and bank-issued deposit tokens in his first speech in office, leaving out any reference to stablecoins.
According to news site Chosun, Shin, who started his four-year tenure on Tuesday, cited the bank’s continuing retail CBDC and deposit-token trial, Project Hangang, as well as its involvement in Project Agorá, a cross-border tokenisation initiative headed by the Bank for International Settlements.
During a time of economic hardship and slower domestic growth, he presented digital currency as a component of a larger change in central banking.
His comments were noticeably devoid of stablecoins. Lawmakers in Seoul have been debating the Digital Asset Basic Act, which would establish guidelines for the issuing of stablecoins.
During his confirmation hearing, Shin informed lawmakers that stablecoins may live with CBDCs and deposit tokens in a “supplementary and competitive” way.
In his speech, he also described a bank-led approach in which commercial banks would issue deposit tokens that could be fully converted into the CBDC, which would be issued by the central bank. Shin has maintained that regulated banks should be the first to issue stablecoins.
Shin indicated a greater examination of non-bank financing and cryptocurrency sectors in addition to payments. He stated that in order to manage financial risks, the central bank would seek wider access to data and increase monitoring of cryptocurrencies and other unconventional assets.
Shin also promised measures to modernise currency markets, including an offshore won settlement system and 24-hour foreign exchange trading.
Source: X.com
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