The Bank of Korea's nominee, Shin Hyun-song, has expressed support for a central bank digital currency, suggesting that it and bank-issued deposit tokens should be the foundation of South Korea's digital currency system, with stablecoins playing a supporting role. In his written remarks to parliament, Shin stated that he expects central bank digital currencies and deposit tokens to coexist with stablecoins in a supplementary and competitive manner. He also emphasized the need for trust in the currency to come first, proposing the introduction of a won-based stablecoin.
Shin views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money. His proposal is in line 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. Shin also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, due to regulatory compliance uncertainty and added costs.
Furthermore, 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 previously warned about the 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 up, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.