The Bank of Korea tapped six experts to assess possible legal issues surrounding the launch of CBDC
At present, when governments of countries are actively researching and developing central bank digital currency (CBDC), South Korea is no less anxious. In particular, according to a press release, the central bank issued earlier today, the Bank of Korea (BOK) formed a legal advisory group to review any legal issues before may launch CBDC in the future.
BOK is considering the legal issues surrounding the CBDC
The group includes six experts, trained three professors, two lawyers, and one BOK official. They will focus on advising on central bank-issued and managed digital currencies.
The panel starts operating today, and it will continue at least until the end of May 2021.
BOK’s Governor Lee Ju-yeol stated:
“We established the advisory group to discuss legal issues surrounding a CBDC and figure out which laws need to be revised or enacted for smooth progress in the BOK’s possible issuance of digital currency.”
Lee Ju-yeol, a former senior deputy governor and veteran of the Bank of Korea
“The digital innovation is a crucial task private lenders, as well as central banks, should embrace amid the rise of contactless payments.”
Korean central bank digital currency is still uncertain
Although the bank is intensifying its efforts in studying the value of issuing a CBDC, the Asian nation rejected this idea. The legal council starting today will be part of a more extensive pilot program launched earlier this year.
After announcing a nearly two-year trial period, bank officials emphasized the lack of urgent need for a domestic CBDC. However, the BOK wants to be prepared if the situation changes, and it must respond quickly.
South Korea may be lagging behind other countries that are strengthening CBDC development. Arguably the most advanced country in this regard is China. The country has tried many field trials of its CBDC in different areas.
As a result, a recent report announced that China could be closer to officially launching a digital currency earlier than the majority.
The issuance of a CBDC can affect global finance, as the US Federal Reserve recently noted. The Fed research department even argues that if the government-backed digital currencies reduce their risks appropriately, they can replace commercial banks to some extent.
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