Shin Hyun-song, the Bank of Korea's nominee, envisions a digital money system centered around central bank digital currencies and bank-issued deposit tokens, with stablecoins playing a secondary, supplementary role. He expressed support for introducing a won-based stablecoin, but stressed the importance of establishing trust in the currency first.
In his written remarks, Shin positioned stablecoins as useful for tokenized asset trading and programmable payments, rather than as a replacement for state-backed currency. His proposal aligns with the central bank's stance that stablecoin issuance should originate from 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, citing regulatory compliance uncertainty and added costs. Furthermore, he noted that digital assets fall short of fulfilling money's core functions as a unit of account, medium of exchange, and store of value. The Bank of Korea has cautioned that privately issued tokens could pose risks to monetary policy and financial stability, advocating for strict oversight.
Shin's comments come amid ongoing debates among policymakers about 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.