Bank of Korea Governor Shin Hyun-song used his first policy address after taking office Tuesday to put central-bank digital currency (CBDC) initiatives and bank-issued deposit tokens at the top of the agenda — conspicuously sidestepping any discussion of private stablecoins. Opening his four-year term by asking “In this time of transition, we must again ask what the role of the Central Bank is,” Shin framed the bank’s immediate priorities around expanding state-backed digital money projects. He said the central bank will push the second phase of its retail CBDC and deposit-token pilot, Project Hangang, to “increase the usability of CBDC and deposit tokens,” and highlighted the bank’s work on cross-border tokenization through Project Agora. The silence on stablecoins marks a change from remarks Shin made during his confirmation hearings, when he said private stablecoins could “be able to coexist complementarily and competitively with deposit tokens” and play a “sufficient role” in the future currency ecosystem. That earlier openness contrasts with his omission of the topic in the maiden policy speech — a notable shift as South Korea’s market for regulated stablecoins is already moving forward. In February, KRW1 launched as the country’s first fully regulated stablecoin through a tie-up between custody provider BDACS and Woori Bank. The timing is politically sensitive: a proposed Digital Asset Basic Act that would set rules for digital assets including stablecoin issuance remains under parliamentary consideration, and legislators from ruling and opposition parties are clashing over how to regulate stablecoins. The Bank of Korea has been active in the debate — Shin met with major bank chiefs in mid-2025 as discussions intensified — and the central bank has signalled its commitment to state-backed digital solutions before, partnering with Samsung in 2023 to explore offline CBDC payments. Shin also used the address to lay out broader financial-market goals. He said the Bank of Korea will pursue internationalization of the won, including steps such as pushing for 24-hour foreign-exchange market operations and building an offshore won payment system. He will chair his first policy meeting on May 28. On monetary policy, Shin urged caution. After the central bank kept its benchmark rate at 2.50% earlier this month amid geopolitical uncertainty, he warned that “given the uncertainty in inflation and growth paths, monetary policy should be conducted in a cautious and flexible manner to ensure stability in prices and financial markets.” Implications for crypto markets: the governor’s emphasis on CBDCs and deposit tokens — and omission of stablecoins in his first address — suggests the Bank of Korea will foreground state-backed digital money and regulated bank offerings as it shapes South Korea’s digital currency landscape, even as private stablecoins and related legislation continue to evolve. Read more AI-generated news on: undefined/news