The nominee to lead the Bank of Korea, Shin Hyun-song, emphasized that a central bank digital currency and bank-issued deposit tokens should be at the core of South Korea's digital money system, with stablecoins playing a supplementary role. He stated that he expects these two to coexist with stablecoins in a competitive and supplementary manner. Shin expressed support for introducing a won-based stablecoin, but stressed that trust in the currency must be established first. He views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than replacing 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 due to regulatory compliance uncertainty and added costs. He noted that digital assets fall short of money's core roles as a unit of account, a medium of exchange, and a store of value.
The Bank of Korea has warned that privately issued tokens could pose risks to monetary policy and financial stability, calling for strict oversight. Shin's remarks come as policymakers debate how to open the market, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.