According to the nominee to lead the Bank of Korea, Shin Hyun-song, 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 stated that he expects these digital currencies and deposit tokens to coexist with stablecoins in a supplementary and competitive manner. Shin expressed his support for introducing a won-based stablecoin, but stressed that trust in the currency must be established first. He views stablecoins as useful tools for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed currency.
His proposal is in line with the central bank's existing 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 uncertainty around regulatory compliance and added costs. He noted that digital assets fall short of money's core roles as a unit of account, a medium of exchange, and a store of value.
The Bank of Korea has warned that privately issued tokens could pose risks to monetary policy and financial stability, and has called for strict oversight, including anti-money laundering and customer verification rules. Shin's remarks come as policymakers debate how to regulate the market, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.