South Korea's nominee to lead the Bank of Korea, Shin Hyun-song, has outlined his vision for the country's digital money system, with a central bank digital currency and bank-issued deposit tokens at its core, and stablecoins playing a secondary role. In his written remarks, Shin stated that he expects these digital currencies to coexist and compete with stablecoins. He also expressed support for introducing a won-based stablecoin, but stressed that trust in the currency must be established first.
Shin views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money. His proposal is in line 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. Shin also questioned the claim that blockchain-based coins would improve foreign exchange efficiency, citing regulatory uncertainty and added costs.
Furthermore, he 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. The Bank of Korea has warned of the potential risks posed by privately issued tokens to monetary policy and financial stability, and has called for strict oversight. Shin's comments 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.