Digital Currency May Violate Current Law

Central bank digital currency, once established as legal money by the monetary authority, may conflict with South Korean law, a report said Monday, amid heated debate over virtual money across the world

SEOUL, (UrduPoint / Pakistan Point News - 16th Apr, 2018 ) ::Central bank digital currency, once established as legal money by the monetary authority, may conflict with South Korean law, a report said Monday, amid heated debate over virtual money across the world.

Recently, global central banks initiated a global discussion on the prospects for the introduction of a central bank digital Currency (CBDC), referring to a form of fiat money that is issued by central banks and governments.

The Bank of Korea (BOK) came up with a draft report of its long-term study on the issue that started last summer. The report said any type of CBDC may violate the property rights by limiting people's choice to own their hard currency or save it at banks in digital form.

Also, the central bank would possibly violate the personal information protection law as it has to collect personal data to open a CBDC-only account for every individual in the country. A BOK official said the study is in the first stage of brainstorming and checking the legal and social effectiveness of the CBDC from a broad perspective.

"We have no plan to issue any type of CBDC that is available for all people in the near future," he said.