BOK Governor Shin Hyun-song Named Chair of BIS Payments Committee, a First for Non-US and Non-European Central Bank Chiefs
Summary
- The Bank of Korea said Governor Shin Hyun-song has been named chair of the BIS's Committee on Payments and Market Infrastructures (CPMI).
- It said the CPMI is a key body that sets international standards for payment systems, financial market infrastructure and the PFMI.
- It said the CPMI is expanding research on changes in the payments environment, including digitalization, tokenization, stablecoins and the unified ledger.
Forecast Trend Report by Period
Shin Hyun-song, governor of the Bank of Korea, has been named chair of the Committee on Payments and Market Infrastructures, or CPMI, under the Bank for International Settlements. It marks the first time a central bank governor from outside the US and Europe has taken the post.
The Bank of Korea said on November 10 that Shin was appointed CPMI chair at the BIS Global Economy Meeting following consultations with member central banks. His three-year term began on November 1.
The CPMI is a key BIS body that sets international standards to improve the safety and efficiency of payment systems and financial market infrastructure. It comprises 28 central banks, including the Federal Reserve, the European Central Bank and the Bank of England. The Bank of Korea has been a member since 2009.
Notably, the CPMI and the International Organization of Securities Commissions, or IOSCO, jointly established the Principles for Financial Market Infrastructures, or PFMI, the top international standards followed by financial market infrastructure institutions such as Korea Exchange, Korea Securities Depository and the Korea Financial Telecommunications and Clearings Institute.
More recently, the committee has expanded research on changes in the payments environment, including digitalization and tokenization. It has analyzed the limitations of stablecoins as a means of payment and set out the role of central bank money and the direction for payment-system design in a tokenized environment.
In 2023, when Shin was serving as BIS economic adviser and head of research, the BIS Annual Economic Report introduced the concept of a unified ledger, in which tokenized money and assets are issued and circulated on a single programmable platform.
The Bank of Korea said the appointment would expand its role in setting international standards in the payments field and increase international interest in the payment-system innovation projects now under way.
