The nominee to lead the Bank of Korea, Shin Hyun-song, has stated that a central bank digital currency and bank-issued deposit tokens should be the foundation of South Korea's digital monetary system, with stablecoins playing a secondary role. According to Yonhap, Shin noted that central bank digital currencies and deposit tokens can coexist with stablecoins in a supplementary and competitive manner.
In his written remarks submitted 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 enabling programmable payments, rather than replacing state-backed currency.
Shin's proposal is in line with the central bank's position that stablecoin issuance should begin with regulated banks, citing compliance demands such as anti-money laundering and customer checks. He also questioned the claim that blockchain-based coins would improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs.
Shin believes 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 of the potential risks of privately issued tokens to monetary policy and financial stability, advocating for strict oversight, including anti-money laundering and customer verification rules. 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.