According to Shin Hyun-song, the nominee for the Bank of Korea's leadership, 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, supplementary role. He expressed his support for introducing a stablecoin pegged to the Korean won, but emphasized that trust in the currency must be established first. Shin views stablecoins as useful for tokenized asset trading and programmable payments, rather than as a replacement for state-backed currencies. His proposal is in line with the central bank's stance that stablecoin issuance should be initiated by regulated banks, due to the need for compliance with anti-money laundering and customer verification requirements.
Shin also raised concerns about the efficiency of blockchain-based coins in foreign exchange, citing regulatory uncertainty and added costs. Furthermore, he noted that digital assets fail to fulfill the core functions of money as a unit of account, medium of exchange, and store of value. The Bank of Korea has previously warned about the potential risks of privately issued tokens to monetary policy and financial stability, advocating for strict oversight. Shin's remarks come as policymakers engage in a debate about 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.