The nominee to lead the Bank of Korea, Shin Hyun-song, has proposed that the nation's digital monetary system should be centered around a central bank digital currency and bank-issued deposit tokens, with 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 that trust in the currency must be established first. He views stablecoins as useful for trading tokenized assets and enabling programmable payments, but not as a replacement for state-backed currency. Shin's proposal 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. He also questioned the claim that blockchain-based coins would improve foreign exchange efficiency, citing regulatory compliance 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 of the potential risks of privately issued tokens to monetary policy and financial stability, calling for strict oversight.
Shin's remarks come as policymakers debate the extent to which the market should be opened, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.