According to Shin Hyun-song, the nominee for the Bank of Korea's leadership, the country's digital monetary system should be centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a secondary, supplementary role. In his written remarks 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 for tokenized asset trading and programmable payments, rather than as a replacement for state-backed currencies. Shin's proposal is in line with the central bank's stance that stablecoin issuance should be initiated by regulated banks, citing the need for compliance with anti-money laundering and customer verification regulations. He also questioned the potential of blockchain-based coins to enhance foreign exchange efficiency, citing regulatory uncertainty and added costs. Shin noted that digital assets fall short of fulfilling the core functions of money, including serving as a unit of account, a medium of exchange, and a store of value.
His comments come as policymakers debate the extent to which the market should be opened, with regulators advocating for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.