The nominee to lead the Bank of Korea, Shin Hyun-song, has outlined his vision for South Korea's digital currency system, with central bank digital currencies and bank-issued deposit tokens at its core, and stablecoins playing a secondary role. According to Yonhap, Shin stated that he expects central bank digital currencies and deposit tokens to coexist with stablecoins in a supplementary and competitive manner. In his written remarks submitted to parliament, Shin expressed support for introducing a won-based stablecoin, but stressed the importance of establishing trust in the currency first.
He views stablecoins as useful tools for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed currency. Shin's proposal aligns with the central bank's existing stance that stablecoin issuance should be led by regulated banks, citing compliance requirements such as anti-money laundering and customer checks. He also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory uncertainty and added costs.
Shin noted that digital assets fall short of fulfilling the core roles of money as a unit of account, medium of exchange, and 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 the extent to which the market should be opened up, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.