The Bank of Korea's nominee, Shin Hyun-song, has expressed support for a central bank digital currency and deposit tokens as the foundation of South Korea's digital monetary system, with stablecoins playing a secondary role. He noted that central bank digital currencies and deposit tokens can coexist with stablecoins in a competitive and supplementary manner. Shin submitted written remarks to parliament, stating that while he supports the introduction of a won-based stablecoin, trust in the currency must be established first. He views stablecoins as useful for trading tokenized assets and enabling programmable payments, but not as a replacement for state-backed currency.
Shin's proposal aligns with the central bank's stance that stablecoin issuance should begin with regulated banks due to compliance requirements such as anti-money laundering and customer checks. He also questioned the claim that blockchain-based coins can improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs.
Furthermore, Shin stated 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 that privately issued tokens may pose risks to monetary policy and financial stability, calling 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.