Bank of Korea nominee backs CBDC-led system with limited stablecoin role

Shin Huyn-song, the nominee to lead the Bank of Korea, advocates for a digital money system centered around central bank digital currencies (CBDCs) and bank-issued deposit tokens, with stablecoins playing a secondary, supplementary, and competitive role. In written remarks, Shin expressed support for a won-based stablecoin but emphasized that trust must precede its introduction, viewing stablecoins primarily as tools for trading tokenized assets and enabling programmable payments rather than replacements for state-backed money. This aligns with the central bank's stance that stablecoin issuance should be initiated by regulated banks due to compliance requirements like anti-money laundering and customer checks. Shin also raised concerns about the efficiency of blockchain-based coins for foreign exchange, citing regulatory uncertainty and added costs. He further noted that cryptocurrencies generally do not fulfill the core functions of money. The Bank of Korea has previously warned about potential risks to monetary policy and financial stability from privately issued tokens, calling for strict oversight. Shin's comments come amid ongoing legislative debates about market openness, with regulators favoring bank-led models while some lawmakers propose broader frameworks for non-bank issuers.

(Source：CoinDesk)