The Bank of Korea's nominee, Shin Hyun-song, has expressed his support for a digital currency system led by the central bank, with a limited role for stablecoins. According to Shin, a central bank digital currency and bank-issued deposit tokens should be the foundation of South Korea's digital money system, while stablecoins would play a secondary role. He noted that central bank digital currencies and deposit tokens can coexist with stablecoins in a competitive and supplementary manner. Shin emphasized the need for trust in the currency and strict anti-money laundering and compliance controls.
He views stablecoins as useful for trading tokenized assets and enabling programmable payments, but not as a replacement for state-backed money. Shin's proposal is in line with the central bank's position that stablecoin issuance should begin with regulated banks, due to compliance demands such as anti-money laundering and customer checks. He also questioned the claim that blockchain-based coins would improve foreign exchange efficiency, citing regulatory compliance and added costs as concerns. Shin stated that digital assets do not fulfill the core roles of money as a unit of account, medium of exchange, and store of value.
His remarks come as policymakers debate the market's future, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.