The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a digital currency system centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary role. In his written remarks submitted to parliament, Shin stated that he expects central bank digital currencies and deposit tokens to coexist with stablecoins in a supplementary and competitive manner. He emphasized the need for trust in the currency to come first and highlighted the usefulness of stablecoins in trading tokenized assets and facilitating programmable payments, rather than replacing state-backed money.
Shin's proposal is in line with the central bank's existing stance that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks. He also raised concerns about the efficiency of blockchain-based coins in foreign exchange and the risks posed by privately issued tokens to monetary policy and financial stability. Shin's remarks come as policymakers discuss 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.