Nominee for Governor of the Bank of Korea: CBDC and deposit tokens should be the core of the digital currency ecosystem

ChainCatcher news, according to Yonhap News Agency, Shin Hyun-song, nominee for governor of the Bank of Korea, stated in a written response during the National Assembly personnel hearing that central bank digital currency (CBDC) and commercial bank deposit tokens issued based on it should become the core of the digital currency ecosystem. Shin Hyun-song expressed basic support for introducing a Korean won stablecoin, but stressed that maintaining trust in the currency is of utmost importance.

Regarding the issuer of the Korean won stablecoin, he believes Korea is not a reserve currency country and compliance capability is crucial; therefore, he suggests priority be given to alliances centered on banks, with non-bank institutions allowed to participate and gradual expansion thereafter. Shin Hyun-song was cautious about the claim that stablecoins can improve foreign exchange transaction efficiency, stating it remains unclear whether blockchain can comply with capital and foreign exchange regulations. He also said that crypto assets, including stablecoins, have not fulfilled core monetary functions such as unit of account, medium of exchange, and store of value, and believes that crypto assets cannot replace fiat currency.