The Bank of Korea's nominee, Shin Hyun-song, emphasized the importance of a central bank digital currency and bank-issued deposit tokens in forming the foundation of South Korea's digital currency system. According to Shin, stablecoins should play a secondary role, supplementing and competing with central bank digital currencies and deposit tokens. In his written remarks, 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 trading tokenized assets and enabling programmable payments, rather than replacing state-backed money. Shin's proposal aligns with the central bank's position that stablecoin issuance should be led by regulated banks, citing the need for compliance with anti-money laundering and customer verification rules. He also raised concerns about the efficiency of blockchain-based coins in foreign exchange and the risks associated with privately issued tokens. Shin's comments come as policymakers debate the future of the market, with regulators pushing for bank-led models and lawmakers proposing broader frameworks for non-bank issuers.