The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a digital money system 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 emphasized the importance of trust in the currency and the need for introducing a won-based stablecoin. He views stablecoins as useful tools for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money. 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 expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs.
Furthermore, 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 previously warned that privately issued tokens could pose risks to monetary policy and financial stability, emphasizing the need for strict oversight, including anti-money laundering and customer verification rules.