The nominee to lead the Bank of Korea, Shin Hyun-song, has expressed support for a digital money system centered around central bank digital currencies and bank-issued deposit tokens, with stablecoins playing a secondary role. He stated that these two should coexist in a supplementary and competitive manner.
Shin submitted written remarks to parliament, citing the importance of trust in the currency and the need for a won-based stablecoin. However, he views stablecoins as tools for trading tokenized assets and programmable payments, rather than a replacement for state-backed currency. His proposal is in line with the central bank's stance that stablecoin issuance should begin with regulated banks due to compliance demands such as anti-money laundering and customer checks. Shin also expressed skepticism about the efficiency of blockchain-based coins in foreign exchange, citing regulatory compliance uncertainty and added costs.
Furthermore, he noted that digital assets fail to fulfill the core roles of money as a unit of account, medium of exchange, and store of value. The Bank of Korea has warned about the potential risks of privately issued tokens to monetary policy and financial stability, calling for strict oversight. Shin's remarks 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.