The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a digital currency system centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary role. According to Yonhap, Shin stated that he expects central bank digital currencies and deposit tokens to coexist with stablecoins in a supplementary and competitive manner. In his written remarks submitted to parliament, Shin emphasized the need for trust in the currency to come first, and framed stablecoins as useful tools for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money.
He proposed that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks. Shin also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, due to regulatory compliance 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 previously 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 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.