BIS Executive Skeptical of Stablecoins Appointed as Governor of the Bank of Korea

Odaily News South Korean President Lee Jae-myung nominated Shin Hung-song, Head of the Monetary and Economic Department at the Bank for International Settlements (BIS), as the Governor of the Bank of Korea on March 22. Shin Hung-song stated last August that the Korean won stablecoin is "a shortcut that effectively bypasses existing foreign exchange controls," potentially opening channels for capital flight. He has already resigned from his position at BIS immediately following the nomination.

Previously, Lee Jae-myung had listed the issuance of the Korean won stablecoin as a core campaign issue. However, the Bank of Korea has consistently blocked the advancement of related legislation, and several major Korean technology companies have been waiting for the stablecoin policy to be finalized for months. A report released by the BIS last year pointed out that stablecoins do not possess the functions of stable currency and may pose risks to financial stability and monetary sovereignty. Industry insiders stated that Shin Hung-song's stance on stablecoins after taking office will be closely watched.