Bank of Korea governor nominees: CBDC and deposit tokens should become the core of the digital currency ecosystem

According to Yonhap News Agency, South Korea's central bank governor nominee Shin Hyun-song said in a written reply to a congressional personnel hearing that the central bank's 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 the introduction of Korean won stablecoins, but stressed that maintaining trust in the currency is the most important.<br /> Regarding the issuer of Korean won stablecoins, he believes that South Korea is not a reserve currency country and compliance capabilities are crucial. Therefore, he suggested giving priority to bank-centered alliance issuance, with non-bank institutions participating, and gradually expanding it in the future. Shin Hyun-song is cautious about the statement that stablecoins improve the efficiency of foreign exchange transactions, and believes that it is unclear whether blockchain can comply with capital and foreign exchange regulations. He also said that crypto assets, including stablecoins, failed to meet the core functions of currency such as value scales, exchange medium and value storage, and believed that crypto assets could not replace legal tender.