The nominee to lead 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 core, and stablecoins playing a supplementary role. According to Yonhap, Shin stated that he expects central bank digital currencies and deposit tokens to coexist with stablecoins in a competitive and supplementary manner. In his written remarks submitted to parliament, Shin emphasized the need for trust in the currency and proposed introducing a won-based stablecoin, but highlighted that stablecoins should be used for specific purposes such as trading tokenized assets and enabling programmable payments, rather than replacing state-backed money.
He also stressed that stablecoin issuance should begin with regulated banks due to compliance demands, and questioned the potential of blockchain-based coins to improve foreign exchange efficiency. Shin further noted that digital assets fall short of fulfilling the core roles of money, and the Bank of Korea has warned of the potential risks of privately issued tokens to monetary policy and financial stability, advocating for strict oversight.
The 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.