Shin Hyun-song, the nominee to lead the Bank of Korea, said a central bank digital currency (CBDC) and bank-issued deposit tokens should form the core of South Korea\u2019s digital money system, with stablecoins playing a secondary role.<\/p>\n
“I expect that central bank digital \u200bcurrencies and deposit tokens will be able to \u200bcoexist with stablecoins in a manner that is \u2060supplementary and competitive to each other,\u201d he said, Yonhap reported, citing <\/a>the Bank of Korea.<\/p>\n In written remarks submitted to parliament ahead of his confirmation hearing on April 15, Shin said he supports introducing a won-based stablecoin, but stressed that trust in the currency must come first, according to Yonhap.<\/p>\n He framed stablecoins as useful tools for trading tokenized assets and enabling programmable payments, not as a replacement for state-backed money.<\/p>\n His proposal aligns with the central bank\u2019s existing position that stablecoin issuance should begin with regulated banks. Shin pointed to compliance demands such as anti-money laundering and customer checks as reasons to start with established lenders, which already meet these standards.<\/p>\n He also questioned claims that blockchain-based coins would improve foreign exchange efficiency, pointing to uncertainty around regulatory compliance and added costs.<\/p>\n Of cryptocurrencies more broadly, Shin said digital assets fall short of money\u2019s core roles as a unit of account, a medium of exchange and a store of value.<\/p>\n The Bank of Korea has warned that privately issued tokens could pose risks to monetary policy and financial stability, and has called for strict oversight including anti-money laundering and customer verification rules.<\/p>\n Shin’s remarks come as policymakers debate how far to open the market. While regulators have pushed for bank-led models, lawmakers have proposed broader frameworks that would allow non-bank issuers under new legislation.<\/p>\n