According to Shin Hyun-song, the nominee to lead the Bank of Korea, the country's digital money system should be centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary role. He noted that these two should coexist with stablecoins in a complementary and competitive manner. Shin expressed support for introducing a won-based stablecoin but stressed that trust in the currency must be established first. He views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than replacing state-backed currency.
His proposal is in line with the central bank's position that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks. Shin also questioned the claim that blockchain-based coins would improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs.
He stated that digital assets fall short of fulfilling money's core roles as a unit of account, medium of exchange, and store of value. The Bank of Korea has warned of the risks posed by privately issued tokens to monetary policy and financial stability, advocating for strict oversight.
Shin's remarks come as policymakers debate market openness, with regulators pushing for bank-led models and lawmakers proposing broader frameworks for non-bank issuers under new legislation.