The nominee to lead the Bank of Korea, Shin Hyun-song, has stated 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 secondary role. According to Yonhap, Shin noted that central bank digital currencies and deposit tokens can coexist with stablecoins in a supplementary and competitive manner. In his written remarks submitted to parliament, 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 tools for trading tokenized assets and enabling programmable payments, rather than as a replacement for state-backed money.
Shin's proposal is in line with the central bank's existing position that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks. He also questioned the claim that blockchain-based coins would improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs. Shin stated 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, including anti-money laundering and customer verification rules.
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.