Overview
- Shin Hyun-song, speaking at his Wednesday confirmation hearing, said the Bank of Korea would act if Middle East supply shocks keep price pressures high and begin to lift core inflation.
- He warned that a sharp slide in the won is undesirable and cited offshore non-deliverable forward trading as a driver of weakness, adding that foreign exchange reserves are sufficient and that he would step in if volatility becomes excessive.
- He backed a system where a central bank digital currency and bank-issued deposit tokens form the core, with won stablecoins in a supporting role under strict anti–money laundering and customer checks.
- He said stablecoin issuance should start with regulated banks to build trust, a path reflected by February’s launch of the KRW1 token through a Woori Bank partnership.
- He proposed expanding the won’s global use by building an offshore settlement system and pointed to ongoing groundwork, including the Bank of Korea’s BIS-linked CBDC tests in 2023 and this year’s expanded pilot with local banks.