Shin Hyun-song, the nominee to lead the Bank of Korea, has proposed a digital money system centered on central bank digital currencies and bank-issued deposit tokens, with stablecoins playing a secondary role. According to Yonhap, he believes that central bank digital currencies and deposit tokens can coexist with stablecoins in a supplementary and competitive manner.
In written remarks submitted to parliament, Shin expressed support for introducing a won-based stablecoin, but emphasized the need for trust in the currency to come first. He views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money. His proposal aligns 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, citing regulatory compliance uncertainty and added costs.
He noted that digital assets fall short of money's core roles as a unit of account, medium of exchange, and store of value. The Bank of Korea has warned of the risks posed by privately issued tokens to monetary policy and financial stability, calling for strict oversight. Shin's remarks come as policymakers debate the market's future, with regulators pushing for bank-led models and lawmakers proposing broader frameworks for non-bank issuers.