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When asked about Shin's stance on 'CBDC complementarity,' a difference in opinion was revealed
Amid the ruling party's drive, 'frequency' adjustment... Today, BIS General Manager's related speech
Regarding Shin Hyun-song, the nominee for Bank of Korea governor, taking a forward-looking stance on stablecoins, the Bank for International Settlements (BIS), where he worked for 12 years, expressed a differing view.
In response to Yonhap News's inquiry about Shin's statement on the 20th that 'stablecoins can be used complementarily and competitively with deposit tokens,' the BIS replied, "Stablecoins do not meet the requirements to become a mainstay of the monetary system when measured against three core criteria: singleness, elasticity, and integrity."
The BIS added that while it "does not discuss individual country policies," its statement was intended to reaffirm its existing position in principle.
This is interpreted as a somewhat different tone from Shin's remarks at the National Assembly confirmation hearing on the 15th.
Shin stated at the time, "It is true that I was negative about stablecoins and virtual assets in the past," adding, "I also established a theoretical framework to some extent."
He continued, "However, in a position leading a central bank, one must consider how to develop the ecosystem in a complementary way by gathering opinions from various stakeholders rather than sticking to one's own opinion."
He also said, "I have thus clarified my position."
Shin's new stance is a significant retreat from the rigid position established by the BIS, which he led, and almost aligns with the Bank of Korea's adapted stance to suit domestic circumstances.
Regarding this topic, the Bank of Korea, influenced by the BIS, initially argued that CBDC-based deposit tokens could replace stablecoins, but then stepped back to advocate for allowing only bank-centric stablecoins first.
However, as political discussions subsequently leaned towards making it difficult to prevent non-bank entry, it made another concession by proposing measures to supplement the system at the issuance authorization stage.
In this regard, Governor Rhee Chang-yong also mentioned in an interview with a foreign media outlet last July that "there is a need to recalibrate our plans."
It is interpreted that Shin, too, aligned his 'frequency' with the Bank of Korea's existing position less than a month after retiring from BIS and returning to Korea.
The introduction of won-based stablecoins was a presidential campaign promise of Lee Jae-myung, and the ruling party, which was promoting related legislation, welcomed Shin's change of stance.
In particular, the Democratic Party of Korea's Digital Asset Task Force (TF) expedited the process, proposing to submit the bill to the National Assembly's Political Affairs Committee's legislative subcommittee for discussion without waiting for the government's proposal.
As a result, stablecoin-themed stocks surged one after another.
The divergence between Shin and his 'former institution' BIS regarding digital assets is expected to become more prominent.
The BIS informed Yonhap News that "Pablo Hernández de Cos, General Manager of the BIS, is scheduled to deliver a speech at the Bank of Japan today (the 20th), and stablecoins will also be covered."
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