South Korea’s new central bank chief kicked off his term with a clear pro-digital message — but one conspicuous omission has already sparked conversation in crypto circles.
In his inaugural policy address, Shin Hyun-song, the newly appointed governor of the Bank of Korea (BOK) and former head of the Monetary and Economic Department at the Bank for International Settlements (BIS), framed the central bank’s next four years around preparing the financial system for a digital future while protecting trust in money and payment stability. He highlighted central bank digital currencies (CBDCs) and bank-issued deposit tokens as key tools for strengthening the won and expanding its role internationally.
“We will increase the usability of CBDC and deposit tokens through Phase 2 of Project Han River, and through international cooperation such as the Agora Project, we will enhance the won’s standing even in a digital payments environment,” Shin said, while stressing that innovation must not come at the expense of financial stability. The BOK, he added, will design “a macroprudential framework suited to the changed environment” to guard against risks that come with digitalization.
Notably absent from the speech was any reference to stablecoins — a subject that has dominated Korea’s digital asset policy debates over the past year. That silence is striking given Shin’s earlier public comments, in which he said won-pegged stablecoins could coexist with CBDCs and deposit tokens. “I expect that central bank digital currencies and deposit tokens will be able to coexist with stablecoins in a manner that is supplementary and competitive to each other,” he said on April 14.
Stablecoins remain a flashpoint for regulators and lawmakers. The Second Phase of the Virtual Asset User Protection Act (commonly called the Digital Assets Act), which is expected to set rules for issuing won-pegged tokens, was delayed after the BOK and the Financial Services Commission (FSC) clashed over banks’ roles in stablecoin issuance. The central bank pushed for a consortium model requiring banks to own at least 51% of any approved stablecoin issuer, arguing for stronger control and oversight. The FSC warned that such a requirement could deter tech firms and stifle market innovation even as both sides agreed that financial institutions must be involved.
Pressure to resolve the impasse is mounting. Last week lawmakers urged the government to prioritize stablecoin legislation, with Representative Kim Sang-hoon publicly calling on the National Assembly to approve the Digital Asset Act at a Korean Commercial Law Association conference in Seoul. The chairman of the Special Committee on Digital Assets — a prominent ruling party lawmaker — warned that political wrangling over governance issues is sidelining the bill’s core aims. “At a time when institutionalization is urgently needed, governance issues such as restrictions on major shareholders’ stakes have suddenly taken center stage in the discussion, while the essential discussions on market stability and support for innovation — which are the core of the bill — are being pushed to the sidelines,” he said.
Shin’s omission of stablecoins from his inaugural speech doesn’t necessarily signal hostility; his prior remarks suggest he sees them as part of a pluralistic digital-currency landscape. Still, with legislation stalled and regulators divided, stablecoins’ future in South Korea’s payments ecosystem — and the role banks will play in it — remains a central open question as the BOK moves to shape a digital-forward currency strategy.
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