The nominee to head the Bank of Korea, Shin Hyun-song, has expressed support for a digital currency system led by the central bank, with bank-issued tokens at its core and stablecoins playing a secondary role. In his written remarks to parliament, Shin stated that he expects central bank digital currencies and deposit tokens to coexist with stablecoins in a supplementary and competitive manner.
He emphasized the need for trust in the currency and stressed that stablecoins should be used for specific purposes such as trading tokenized assets and enabling programmable payments, rather than replacing state-backed money. Shin also highlighted the importance of compliance with anti-money laundering and customer verification rules, suggesting that stablecoin issuance should begin with regulated banks. Furthermore, he questioned the potential of blockchain-based coins to improve foreign exchange efficiency due to regulatory uncertainties and added costs. Shin's views align with the central bank's position on the need for strict oversight of privately issued tokens to mitigate risks to monetary policy and financial stability.