According to Shin Hyun-song, the nominee to lead the Bank of Korea, the country's digital money system should be centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary role. He noted that central bank digital currencies and deposit tokens can coexist with stablecoins in a supplementary and competitive manner. Shin submitted written remarks to parliament ahead of his confirmation hearing, stating his support for introducing a won-based stablecoin, but stressed that trust in the currency must be established first.
He views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than replacing state-backed money. Shin's proposal aligns 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. He also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, due to regulatory uncertainty and added costs.
Shin believes 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 about the potential risks of privately issued tokens to monetary policy and financial stability, and has called 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.