Shin Hyun-sung, the Governor of the Bank of Korea, has been appointed as the chair of the Payments and Market Infrastructure Committee (CPMI) under the Bank for International Settlements (BIS). This marks the first time a central bank governor from outside the United States and Europe has taken on this role.
According to the Bank of Korea on November 10, Shin was selected as CPMI chair following consultations among member countries at the BIS Global Economic Meeting (GEM). His term began on November 1 and will last for three years.
The CPMI is an international standard-setting body aimed at enhancing the stability and efficiency of payment systems and financial market infrastructures. It includes 28 major central banks, such as the U.S. Federal Reserve, the European Central Bank, and the Bank of England. The Bank of Korea joined the CPMI in July 2009.
In 2012, the CPMI, in collaboration with the International Organization of Securities Commissions (IOSCO), established the Principles for Financial Market Infrastructures (PFMI), which outlines 24 principles that financial market infrastructures must adhere to. Additionally, it develops international standards and recommendations to assess risks in payment systems and improve responses to cyberattacks.
Lee Byung-mok, head of the Bank of Korea's Financial Settlement Bureau, stated, "The CPMI is an organization that creates international rules for payment settlements. Although it is not an international treaty, the standards established here effectively serve as the foundation for financial regulations in major countries."
Historically, the chair position of the CPMI has been held by senior officials from major central banks in the U.S. and Europe. Previous chairs include Timothy Geithner, former president of the Federal Reserve Bank of New York, and Paul Tucker, former deputy governor of the Bank of England. The most recent chair was Fabio Panetta, governor of the Bank of Italy.
In June 2023, while serving as an economic advisor and director of research at the BIS, Shin proposed the concept of a 'Unified Ledger' for issuing and distributing tokenized currencies and financial assets on a single platform, which he described as a key blueprint for the next-generation financial system.
Looking ahead, the CPMI is expected to discuss key issues such as the tokenization of digital assets and improvements in cross-border payment systems. Other areas of focus will include reducing costs and increasing the speed of cross-border remittances, as well as enhancing payment systems and financial market infrastructure resilience using artificial intelligence (AI).
Lee added, "Although the scale of our financial market is smaller than that of the U.S. or Europe, we have accumulated leading innovative capabilities in the payment settlement sector. Governor Shin's international reputation and the Bank of Korea's recognized leadership in payment settlements have contributed to this appointment."
* This article has been translated by AI.
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