Shin Hyun-song, the Bank of Korea's nominee, proposed that 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. According to Yonhap, he stated that these two forms of digital currency can coexist with stablecoins in a competitive and complementary manner.
In his written remarks, 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 tokenized asset trading and programmable payments, rather than as a replacement for state-backed currency. Shin's proposal is in line with the central bank's position that stablecoin issuance should be led by regulated banks, citing compliance demands such as anti-money laundering and customer checks. He also raised concerns about the potential benefits of blockchain-based coins in terms of foreign exchange efficiency, citing regulatory uncertainty and added costs.
Furthermore, Shin believes that digital assets lack the core functions of money, including serving as a unit of account, medium of exchange, and store of value. The Bank of Korea has warned about the risks posed by privately issued tokens 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 up, with regulators pushing for bank-led models and lawmakers proposing broader frameworks that would allow non-bank issuers under new legislation.