The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a digital money system centered around central bank digital currencies and bank-issued deposit tokens, with stablecoins playing a secondary role. According to Yonhap, he stated that central bank digital currencies and deposit tokens can coexist with stablecoins in a supplementary and competitive manner. In his written remarks to parliament, Shin emphasized the need for trust in the currency and proposed introducing a won-based stablecoin. He views stablecoins as useful 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 stance that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks. He also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory 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.
His 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.