The Bank of Korea's nominee, Shin Hyun-song, has expressed support for a digital currency system led by the central bank, with bank-issued deposit tokens and central bank digital currencies forming the foundation. According to Shin, stablecoins should play a secondary role, supplementing and competing with these core components.
In his written remarks, Shin highlighted the need for trust in the currency and emphasized that stablecoins are better suited for tokenized asset trading and programmable payments, rather than replacing state-backed currency. He also stressed the importance of compliance with anti-money laundering and customer verification regulations, suggesting that regulated banks should be the primary issuers of stablecoins.
Furthermore, Shin questioned the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory uncertainties and added costs. The nominee's proposal aligns with the central bank's existing stance, which prioritizes strict oversight, including anti-money laundering and customer verification rules, to mitigate risks to monetary policy and financial stability.