According to Shin Hyun-song, the nominee to lead the Bank of Korea, the country's digital monetary system should be centered around a central bank digital currency and bank-issued deposit tokens, with stablecoins playing a supporting role. He noted that central bank digital currencies and deposit tokens can coexist with stablecoins in a competitive and supplementary 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 be initiated by regulated banks, given the need for compliance with anti-money laundering and customer verification requirements. He also questioned the claim that blockchain-based coins can improve foreign exchange efficiency, citing regulatory compliance uncertainty and added costs. 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 pose risks to monetary policy and financial stability, advocating for strict oversight. Shin's comments come as policymakers debate the market's openness, with regulators pushing for bank-led models and lawmakers proposing broader frameworks for non-bank issuers under new legislation.