Shin Hyun-song, the nominee for the Bank of Korea's leadership, proposed that 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 role. He noted that these two can coexist with stablecoins in a supplementary and competitive manner. 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 trading tokenized assets and facilitating programmable payments, rather than replacing state-backed currency. Shin's proposal is in line with the central bank's stance that stablecoin issuance should be initiated by regulated banks, citing compliance requirements such as anti-money laundering and customer checks.
He also raised concerns about the claims that blockchain-based coins can improve foreign exchange efficiency, citing regulatory uncertainty and added costs. Furthermore, Shin stated that digital assets lack the core functions of money, including being a unit of account, a medium of exchange, and a store of value.
The Bank of Korea has warned about the risks posed by privately issued tokens to monetary policy and financial stability, calling for strict oversight. Shin's comments come as policymakers debate the extent to which the market should be opened, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.