The nominee for the Bank of Korea, Shin Hyun-song, has expressed his support for a digital currency system led by the central bank, with bank-issued deposit tokens and central bank digital currencies at its core. According to Shin, stablecoins should play a secondary role, coexisting with these core components in a competitive and supplementary manner.
In his written remarks, Shin highlighted the potential benefits of stablecoins in facilitating tokenized asset trading and programmable payments, but stressed that trust in the currency must be established first. He also emphasized the need for compliance with anti-money laundering and customer verification regulations, suggesting that stablecoin issuance should begin with regulated banks.
Shin's proposal aligns with the central bank's existing stance, and he has also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency. Furthermore, Shin noted that digital assets currently 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. The Bank of Korea has previously warned about the potential risks of privately issued tokens to monetary policy and financial stability, and has called for strict oversight. Shin's remarks come as policymakers continue to debate the future of digital currencies in the country, with regulators pushing for bank-led models and lawmakers proposing broader frameworks.