According to Shin Hyun-song, the nominee to lead the Bank of Korea, the country's digital money system should primarily consist of a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a supplementary role. He noted that these two can coexist in a competitive and complementary manner.
In his written remarks, 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 as a replacement for state-backed currency.
Shin's proposal is in line with the central bank's existing stance that stablecoin issuance should begin with regulated banks, citing compliance requirements such as anti-money laundering and customer checks. He also raised concerns about the efficiency of blockchain-based coins in foreign exchange, citing regulatory compliance uncertainty and added costs.
Furthermore, Shin stated that digital assets do not fulfill the core functions of money as a unit of account, medium of exchange, and store of value. The Bank of Korea has warned that privately issued tokens could pose risks to monetary policy and financial stability, advocating for strict oversight. Shin's comments 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.