SEOUL, April 14 - In written remarks submitted to parliament on Monday, Shin Hyun-song, the nominee to lead the Bank of Korea, said won-denominated stablecoins should be introduced and would have a role in the future currency landscape.
Shin wrote that he expects central bank digital currencies and deposit tokens to be able to coexist with stablecoins "in a manner that is supplementary and competitive to each other," the Bank of Korea said on Tuesday. The nominee is scheduled to appear at a parliamentary confirmation hearing on Wednesday.
The remarks reiterated the central bank's prior engagement with digital currency experiments. In 2023, the Bank of Korea ran a joint project to test a central bank digital currency with the Bank for International Settlements, an initiative Shin was involved with during his previous employment there.
On household finances, Shin signalled that efforts to reduce leverage among households must continue. He noted household debt levels remain high and argued that policy actions to stabilise prices should proceed alongside de-leveraging measures.
"It is still uncertain if the stabilising trend (in house prices) will continue, so policy measures to control demand and increase supply need to be pursued consistently," Shin said in his written submission.
Local media reports cited Shin as aligning with government rules targeting owners of multiple homes, while also expressing caution about property taxes that could be deemed excessively high. The nominee's comments indicate support for demand-side and supply-side actions to address housing market stability, paired with sensitivity to tax burdens.
Reports also said Shin told the central bank would look at diversifying its foreign exchange reserves by allocating some holdings to gold exchange-traded funds. The remarks on reserve strategy were described in media accounts rather than in the written submission itself.
Contextual note - The statements were provided in a written format to parliament and supplement the agenda for Shin's upcoming confirmation hearing. They touch on digital currency policy, household debt management and potential changes to reserve composition.