The nominee for the Bank of Korea's governorship, 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 forming the foundation, while stablecoins play a secondary role. According to Yonhap, Shin stated that he expects these currencies to coexist and compete with stablecoins in a supplementary manner.
In his written remarks to parliament, Shin expressed his support for introducing a won-based stablecoin, but highlighted the need for trust in the currency to come 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 stance that stablecoin issuance should begin with regulated banks, citing the need for compliance with anti-money laundering and customer verification rules. He also expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs.
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 of the potential risks of privately issued tokens to monetary policy and financial stability, and has advocated for strict oversight. Shin's remarks 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.