The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed his support for a central bank digital currency and deposit tokens as the core of South Korea's digital money system. According to Shin, stablecoins should have a supplementary and competitive role, rather than replacing state-backed money.
In his written remarks, Shin noted that introducing a won-based stablecoin is acceptable, but only if trust in the currency is established first. He views stablecoins as useful for trading tokenized assets and enabling programmable payments, rather than as a replacement for traditional currency. Shin's proposal aligns with the central bank's stance that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks. He also expressed skepticism about the efficiency of blockchain-based coins in foreign exchange, citing regulatory uncertainty and added costs.
Shin stated that digital assets lack the core functions of money, including being a unit of account, medium of exchange, and store of value. His remarks come as policymakers debate the market's openness, with regulators pushing for bank-led models and lawmakers proposing broader frameworks for non-bank issuers.