The nominee to head 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, and stablecoins playing a secondary role. According to Yonhap, Shin stated that he expects these digital currencies to coexist with stablecoins in a supplementary and competitive manner. In his written remarks submitted to parliament, Shin emphasized the importance of trust in the currency and proposed introducing a won-based stablecoin, but with strict anti-money laundering and compliance controls in place.
He views stablecoins as useful for trading tokenized assets and enabling programmable payments, but not as a replacement for state-backed money. Shin's proposal aligns with the central bank's position that stablecoin issuance should begin with regulated banks, citing compliance demands as a key reason.
He also expressed skepticism about the ability of blockchain-based coins to improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs. Furthermore, Shin noted that digital assets fall short of fulfilling 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, and has called for strict oversight. Shin's remarks come as policymakers debate the extent to which the market should be opened up, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation. Recently, the country's first fully regulated stablecoin, KRW1, was launched through a partnership between crypto custody service provider BDACS and Woori Bank.