The nominee for the Bank of Korea, Shin Hyun-song, proposed that the country's digital monetary system should be centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary role. He noted that these two should coexist and complement each other. In his written remarks to parliament, Shin expressed support for introducing a won-based stablecoin but highlighted the necessity of establishing trust in the currency first. He views stablecoins as useful for tokenized asset trading and programmable payments, rather than as a replacement for state-backed currency.
Shin's proposal is in line with the central bank's stance that stablecoin issuance should be initiated by regulated banks, citing the need for compliance with anti-money laundering and customer verification requirements. He also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency due to regulatory compliance uncertainties and added costs. Shin stated that digital assets fail to fulfill the core functions of money as a unit of account, medium of exchange, and store of value. His remarks come amid ongoing debates among policymakers on 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.