The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a central bank digital currency, suggesting that it, along with bank-issued deposit tokens, should be at the forefront of South Korea's digital money system. He believes stablecoins should play a secondary role, coexisting with central bank digital currencies and deposit tokens in a supplementary and competitive manner. Shin emphasized the need for trust in the currency, suggesting that a won-based stablecoin could be introduced, but only after ensuring compliance with anti-money laundering and customer verification regulations.
He views stablecoins as useful for trading tokenized assets and enabling programmable payments, but not as a replacement for state-backed currency. Shin's proposal is in line with the central bank's stance that stablecoin issuance should be led by regulated banks, citing the need for compliance with anti-money laundering and customer checks.
He also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs. Furthermore, Shin stated that digital assets fall short of fulfilling the core roles of money as a unit of account, medium of exchange, and store of value. His remarks come as policymakers debate the extent to which the market should be opened up, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.