The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a central bank digital currency and deposit tokens as the foundation of South Korea's digital currency system, with stablecoins playing a secondary role. According to Yonhap, Shin stated that central bank digital currencies and deposit tokens can coexist with stablecoins in a supplementary and competitive manner. In his written remarks submitted to parliament, Shin voiced his support for introducing a won-based stablecoin, but stressed that trust in the currency must be established first.
He views stablecoins as useful tools for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed currency. Shin's proposal aligns with the central bank's existing stance that stablecoin issuance should commence with regulated banks, citing compliance demands such as anti-money laundering and customer checks. He also expressed skepticism about the claim that blockchain-based coins can 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 warned that privately issued tokens could pose risks to monetary policy and financial stability, and has called for strict oversight, including anti-money laundering and customer verification rules. 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.