The nominee to lead the Bank of Korea, Shin Hyun-song, has outlined a vision for South Korea's digital currency ecosystem, with central bank digital currencies and bank-issued deposit tokens at its core, and stablecoins playing a secondary, supplementary role. In his written remarks to parliament, Shin noted that while stablecoins can be useful for certain transactions, such as trading tokenized assets, they should not be seen as a replacement for fiat currency. Instead, he proposed introducing a won-based stablecoin, with a focus on establishing trust in the currency. Shin also highlighted the need for compliance with anti-money laundering and customer verification rules, suggesting that stablecoin issuance should be led by regulated banks.
The nominee's views align with the central bank's position, which emphasizes the importance of oversight and regulation in the development of digital currencies. As policymakers continue to debate the future of digital currencies in South Korea, Shin's remarks offer insight into the potential direction of the country's monetary policy and financial regulation.