An executive from the Bank for International Settlements who is skeptical about stablecoins will become the governor of the Bank of Korea

South Korean President Lee Jae-myung nominated Shin Hung-song, the head of the Monetary and Economic Department of the Bank for International Settlements (BIS), to serve as the governor of the Bank of Korea. Shin Hung-song stated last year that the issuance of a Korean won stablecoin is "an effective shortcut to bypass existing foreign exchange controls," which could open the door for capital outflows, and he immediately resigned from his BIS position after the nomination.

Previously, Lee Jae-myung had listed the issuance of a Korean won stablecoin as a core campaign issue, but the Bank of Korea has consistently blocked the advancement of related legislation. Several large tech companies in South Korea have been waiting for stablecoin policies to be implemented for months. A report released by the BIS last year pointed out that stablecoins do not possess the functions of stable currencies and could pose risks to financial stability and monetary sovereignty. Industry insiders indicate that Shin Hung-song's stance on stablecoins will be closely monitored after he takes office.