The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a digital currency system centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary role. According to Shin, these two should coexist in a supplementary and competitive manner.
He also stated that introducing a won-based stablecoin is a possibility, but it is crucial to establish trust in the currency first. Shin views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money.
He aligns 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 expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, due to regulatory compliance uncertainty and added costs.
Furthermore, he believes that digital assets do not fulfill the core roles of money as a unit of account, medium of exchange, and store of value. The Bank of Korea has previously warned about the potential risks of privately issued tokens to monetary policy and financial stability, advocating for strict oversight.
Shin's remarks come amid ongoing debates among policymakers on how to regulate the market, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers.