Stablecoin Critic Shin Hung-song to Lead South Korea's Bank
President Lee Jae-myung nominated Bank for International Settlements Monetary Economy Bureau chief Shin Hung-song for the Bank of Korea governorship on March 22. Shin warned last August that won-denominated stablecoins are a shortcut to neutralizing foreign exchange regulations.
Key Takeaway
South Korea's next central bank chief opposes the president's stablecoin plan — expect regulatory friction ahead.
Bank for International Settlements Monetary Economy Bureau chief Shin Hung-song landed a nomination for South Korea's central bank top job despite his vocal opposition to won-pegged stablecoins.
President Lee Jae-myung picked Shin for the Bank of Korea governorship on March 22. The move creates a policy clash — Lee made won-pegged stablecoin issuance a key campaign promise last year, while Shin has openly criticized the idea.
Shin warned last August that won-denominated stablecoins could undermine capital controls by exchanging stablecoins for dollar-denominated cryptocurrencies on blockchain protocols, opening a channel for capital outflow.
The Bank of Korea shares Shin's concerns. The central bank said allowing won-denominated stablecoins could undermine its efforts to control fiscal policy. Last year, the BIS published a report warning that stablecoins do not fulfill the role of stable currency, with authors saying stablecoins could pose risks to financial stability and monetary sovereignty due to a lack of regulation on March 22.
This article was written based on reporting from Dlnews.
