The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a central bank digital currency, suggesting that it and bank-issued deposit tokens should be at the core of South Korea's digital currency system, 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, Shin emphasized the need for trust in the currency and proposed introducing a won-based stablecoin, but with a focus on using stablecoins for trading tokenized assets and programmable payments, rather than replacing state-backed money. His proposal aligns with the central bank's existing stance 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 can improve foreign exchange efficiency, citing regulatory compliance uncertainties and added costs. 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 previously warned of the risks posed by privately issued tokens to monetary policy and financial stability, and has called for strict oversight. Shin's remarks come amid ongoing debates among policymakers on how to regulate the market, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.