The nominee for the Bank of Korea, Shin Hyun-song, has expressed support for a digital currency system led by the central bank, with bank-issued deposit tokens and central bank digital currencies forming the foundation, while stablecoins play a secondary role. In his written remarks to parliament, Shin stated that he expects these digital currencies to coexist with stablecoins in a competitive and supplementary manner. He emphasized the need for trust in the currency and proposed introducing a won-based stablecoin, but only after ensuring strict anti-money laundering and compliance controls are in place.
Shin views stablecoins as useful for tokenized assets and programmable payments, but not as a replacement for state-backed currency. His proposal aligns with the central bank's stance that stablecoin issuance should be led by regulated banks, which already meet compliance demands such as anti-money laundering and customer checks. Shin also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory uncertainty and added costs.
He 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 about the risks of privately issued tokens to monetary policy and financial stability, and has called 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.