Bank of Korea nominee backs central bank-led digital currency, sees limited role for stablecoins

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bank of Korea nominee backs central bank-led digital currency, sees limited role for stablecoins The nominee, Shin Huyn-song, supported a central bank digital currency model, emphasizing the need for strict anti-money laundering and compliance controls. By Francisco Rodrigues , AI Boost | Edited by Sheldon Reback Apr 14, 2026, 10:01 a.m. Make preferred on Shin Huyn-song supports a central bank digital currency model. (Daniel Bernard/Unsplash) What to know : Shin Huyn-song, the nominee to become governor of the Bank of Korea, is prioritizing a potential central bank digital currency and bank deposit tokens over privately issued stablecoins. Shin said he supported a bank-led issuance model, emphasizing strict anti-money laundering (AML) and compliance controls. He expressed doubt about the role of cryptocurrencies as money and their potential to improve foreign exchange efficiency. 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’s digital money system, with stablecoins playing a secondary role. "I expect that central bank digital ​currencies and deposit tokens will be able to ​coexist with stablecoins in a manner that is ⁠supplementary and competitive to each other,” he said, Yonhap reported, citing the Bank of Korea. 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. He framed stablecoins as useful tools for trading tokenized assets and enabling programmable payments, not as a replacement for state-backed money. His proposal aligns with the central bank’s 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. He also questioned claims that blockchain-based coins would improve foreign exchange efficiency, pointing to uncertainty around regulatory compliance and added costs. Of cryptocurrencies more broadly, Shin said digital assets fall short of money’s core roles as a unit of account, a medium of exchange and a store of value. 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. 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. The country’s first fully regulated stablecoin, KRW1, debuted in February through a partnership between crypto custody service provider BDACS and Woori Bank. Stablecoins CBDC South Korea AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You U.S. lawmakers take another swing at crypto tax policy with revised bill By Nikhilesh De | Edited by Jesse Hamilton 7 hours ago A bill would amend how the IRS would approach crypto taxes. Read full story Latest Crypto News Strategy's STRC sees record-breaking trading day, may surpass that on Tuesday 30 minutes ago Here are key bitcoin price levels to watch as the rally gathers steam 1 hour ago NFT bull Steve Aoki sells his SHIB, ETH, and PEPE. His Bored Apes are down 88%. 3 hours ago Nikita Bier says crypto has had a rough year, hints at building something new as X Money launch nears 3 hours ago Little-known token ranks alongside bitcoin and ether in the top three — just not in the way you think 4 hours ago Japan's central bank cools rate hike expectations, removing a key risk for bitcoin's rally 4 hours ago Top Stories Ether outpaces bitcoin as ETF flows split and Ethereum activity jumps 41% on-week 5 hours ago Bearish bets lose $430 million as BTC, ETH surge as much as 7% 5 hours ago XRP climbs 3% to $1.37 as accumulation builds, but key breakout still ahead 4 hours ago Crypto exchange Kraken targeted in extortion attempt but says there was no breach and no client funds at risk 18 hours ago U.S. SEC says software allowing crypto wallet transactions not considered broker 16 hours ago