The coexistence theory of central bank digital currencies and stablecoins is formalized... The central bank's dual-track system may be realized.

Central bank digital currencies (CBDCs) and the possible “coexistence” with stablecoins have officially come into view, with signals of change in the digital currency order already flashing. South Korean Bank (central bank) presidential candidate Shin Hyun-sung hinted at adopting a “dual-track strategy” that maintains the central bank-centered system while embracing private-sector innovation—this is the key point.

According to iM Securities 21, candidate Shin Hyun-sung said that CBDCs and bank-issued “deposit tokens” should become the central axis of the digital currency ecosystem. At the same time, he proposed a “complementary coexistence” model in which stablecoins can serve as a payment means for tokenized asset transactions. This also matches the research stance he previously expressed while working at the Bank for International Settlements (BIS) on “token economics and blockchain fragmentation.”

Blockchain “Fragmentation” Limitations… Clashing with Currency Uniformity

Candidate Shin pointed out the “fragmentation” that arises from structural problems in blockchain. He explained that, due to the way each chain ecosystem is segmented from one another, it is difficult to maintain the essence of currency—“uniformity,” meaning the ability to circulate with the same value regardless of where it is located.

Analysis suggests that, unlike traditional currencies whose utility increases the more integrated a network becomes, blockchain incurs costs due to its verification reward structure, and it may also drive user fees and inter-chain transfers—ultimately potentially reinforcing a multi-chain coexistence situation. In such a case, stablecoins may also become segmented by chain, making it difficult to play the role of a “single currency.”

CBDC · Deposit Tokens at the Center, Bank Alliance Model Emerges

Based on this, candidate Shin assessed that a more stable digital currency structure is one built on CBDC grounded in central bank trust, and deposit tokens that make use of the existing banking system.

He specifically pointed out that, for non-core-currency countries like Korea, because the importance of anti-money laundering (AML), customer identification (KYC), and compliance with foreign exchange regulations is greater, adopting a bank-centered “alliance” structure and allowing non-bank institutions to participate is more realistic in the initial stage. This is a phased way of gradually expanding private-sector participation.

Stablecoin Regulation at the Crossroads of “Whether It’s Currency or Innovation”

This tone also aligns with the current delayed discussions on the “Basic Law on Digital Assets.” Although the bill covers the issuance, circulation, and disclosure of virtual assets, legislative gaps have persisted due to differences in policy perspectives surrounding stablecoins.

The core controversy is whether to view stablecoins as “private-sector innovation tools,” or to treat them as “quasi-currencies” directly related to payment settlement and financial stability, and regulate them primarily with banks as the center. During discussions of the Financial Committee this March, a structure centered on bank shareholding of “50%+1 share” was included, and such conflicts have since come to the surface.

South Korean Bank’s Influence Expands… Becoming a Variable in Designing the Currency Order

Although it does not have statutory legislative authority, the influence of the South Korean Bank is expected to grow. This is because stablecoins, CBDCs, and deposit tokens have moved beyond being merely industry issues, and have become directly related to payment settlement and monetary policy.

Some assessments say that stablecoins based on the Korean won essentially have the nature of “private digital currencies,” so the stance of the South Korean Bank will inevitably be strongly reflected in areas such as currency uniformity, financial stability, and the possibility of bank runs.

Ultimately, the relationship between CBDC and stablecoins is tending toward “parallel” rather than “substitution.” If a structure in which the central bank maintains order while the private sector is responsible for innovation becomes a reality, the direction of future dominance competition in digital currencies is also very likely to be reorganized within this framework.

TP AI Notice: This article was summarized using a language model based on TokenPost.ai. The main content of the original text may be omitted or may not match the facts.