Shin Hyun-song, the Bank of Korea's nominee, has expressed support for a digital currency system centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary role. He stated that these currencies can coexist and complement each other, but stressed the need for trust and strict regulations. Shin also highlighted the potential benefits of stablecoins in facilitating tokenized asset trading and programmable payments, but not as a replacement for state-backed currency. His proposal is in line with the central bank's stance on stablecoin issuance, emphasizing the importance of compliance and regulatory oversight.
Shin also questioned the potential of blockchain-based coins to improve foreign exchange efficiency and noted that digital assets fail to fulfill the core functions of money. The Bank of Korea has warned about the risks of privately issued tokens to monetary policy and financial stability, and Shin's remarks come as policymakers debate the future of the market.