The nominee to lead the Bank of Korea, Shin Hyun-song, has stated that a central bank digital currency and bank-issued deposit tokens should be at the core of South Korea's digital money system. According to Shin, stablecoins should have a secondary role, coexisting with central bank digital currencies and deposit tokens in a competitive and supplementary manner. In his written remarks to parliament, Shin expressed support for introducing a won-based stablecoin, but stressed that trust in the currency must come first.
He views stablecoins as useful tools for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money. Shin's proposal is in line with the central bank's existing position that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks.
He also questioned the claim that blockchain-based coins would improve foreign exchange efficiency, citing uncertainty around regulatory compliance and added costs. Shin stated that digital assets fall short of money's core roles as a unit of account, a medium of exchange, and a 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 how far to open the market, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.