The new Governor of the Bank of Korea, Shin Hyun-song, has clearly stated his priorities in his inaugural policy address. Governor Shin emphasized a focus on central bank digital currencies (CBDCs) and bank-issued deposit tokens, while conspicuously leaving stablecoins unmentioned. This strategic direction was highlighted during discussions of Project Hangang, the bank's initiative aimed at enhancing the usability of CBDCs and deposit tokens and supporting cross-border tokenization efforts.
This stance represents a potential shift from previous considerations where private stablecoins were seen as having a complementary role. The omission comes at a critical time, as South Korea's legislature debates new regulations for digital assets, including stablecoin issuance. Project Hangang is central to the bank's strategy for payment system stability.
Beyond digital currencies, Governor Shin also outlined broader financial market reforms. Plans include promoting the internationalization of the Korean won, potentially through a 24-hour foreign exchange market and an offshore won payment system. On monetary policy, Shin signaled a cautious approach, advocating for flexibility given current uncertainties in inflation and growth.