Shin Hyun-song: "Central Bank Digital Currency and Deposit Tokens Must Become the Center of the Coin Ecosystem"

Shin Hyun-song: "Central Bank Digital Currency and Deposit Tokens Must Become the Center of the Coin Ecosystem"

"Korean Won Coin, Deposit Tokens Play Complementary Role... Prioritize Bank-Led Issuance"

Shin Hyun-song, nominee for Governor of the Bank of Korea, stated on the 13th that "Central Bank Digital Currency (CBDC) and the commercial bank deposit tokens issued based on it should become the center of the digital currency ecosystem."

In a written response to the National Assembly's Finance and Economy Committee's confirmation hearing, nominee Shin stated, "While I fundamentally agree with the introduction of domestic Korean Won stablecoins, maintaining trust in currency remains the most important factor."

He added, "Stablecoins have positive effects such as being used as a means of transaction for tokenized assets and supporting programming functions, so they will certainly have a role in the future currency ecosystem," and "they can coexist complementarily and competitively with deposit tokens."

Regarding the issuing entity of Korean Won stablecoins, he stated, "Unlike countries like the United States and Europe, Korea is not a key currency country, and the importance of regulatory compliance, such as customer identification obligations and anti-money laundering, is significant." He added, "Considering this, it is desirable to first allow issuance in a consortium centered on verified banks, with non-banks participating, and then gradually expand it."

This is consistent with the Bank of Korea's stance, which has advocated for allowing bank-led issuance of Korean Won stablecoins.

Regarding the argument that stablecoins can increase the efficiency of foreign exchange transactions, he expressed a cautious stance, saying, "It is not clear whether blockchain can appropriately comply with capital and foreign exchange regulations, or whether there will be an effect of improving foreign exchange transaction efficiency even if compliance costs increase."

Regarding virtual assets in general, including stablecoins, he stated, "They do not meet the requirements of money's core functions: a measure of value, a medium of exchange, and a store of value," and "I believe virtual assets have fundamental limitations in replacing existing legal tender."