Interpretation of “digital currency is a legalization recognized by the state”
Haneun law needs to be modified for official publication
China’s digital yuan is the leading issue in 2022
The Bank of Korea’s Central Bank Digital Currency (CBDC) introduction work is taking shape. As digital currency has the characteristics of’legal currency’, which is an officially licensed currency in the country, it has been interpreted that the BOK should prepare a legal basis for issuance.
Seoul National University Law School Professor Jeong Soon-seop and others included the above in a report on the’Legal Issues Related to Central Bank CBDC and Revision Directions’, which was commissioned by the BOK on the 8th. Digital currency is a virtual currency issued by the central bank using blockchain and distributed ledger technology. The difference from commercial cryptocurrency is that it can be exchanged one-to-one with the existing legal currency.
The researchers said, “The BOK can monopolize the issuing power of digital currency, and at the same time, it can be forcibly used.” You can do it,” he explained. He said, “Digital currency has a status as a legal currency.” It means that the central bank digital currency has the character of an existing currency unlike virtual currencies such as bitcoin.
Articles 49 and 53 of the BOK Act define the currency issued by the BOK as only bills and coins that have substance. The researchers suggested that in order for the BOK to issue digital currency, such BOK law should be corrected. “It is difficult to interpret that digital currency is included in coins and bills,” said the research team. “It is necessary to prepare separate rules for issuing digital money.” It was also said that the criminal and civil law should also be modified to punish forgery and forgery of digital currency and to prepare grounds for seizure and acquisition.
The BOK formed the Digital Currency Research Task Force (TF) in January 2018, but disbanded it in January of last year, a year later. In February last year, the digital currency research team was reorganized, and this year, the virtual environment system for digital currency distribution is being checked. It is also reviewing measures to improve laws and systems within the year. There is an evaluation that the pace of digital currency development was relatively slow as the TF was set up and abolished. BOK Governor Lee Ju-yeol said at a press conference immediately after the Financial Monetary Committee last month, “The need for issuance of digital currency is not great, but we have conducted research in preparation for the need for issuance.”
On the other hand, China is evaluating that the official introduction of the digital currency, the digital renminbi, is ahead. China has enacted legislation related to the issuance of digital renminbi, and has been piloting digital renminbi since last year in large cities such as Shenzhen, Suzhou and Chengdu. The People’s Bank, China’s central bank, has yet to say when it will officially use the digital renminbi. However, experts believe that it will be officially introduced just before the Beijing Winter Olympics in February 2022.
Reporter Kim Ik-hwan [email protected]
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