Bank Of Korea Introduces A New Legal Advisory Council For Its CBDC

  • Recently on Monday, June 15th, 2020, Bank of Korea (BOK) released a group that aims at giving legal advice to the central bank-issued digital currency (CBDC).
  • Central Bank Digital Currency or CBDC is basically a digital form of the local reserved currency. The government issues it.
  • According to BOK’s announcement, this new council held for a total of 12 months.

Recently on Monday, June 15th, 2020, Bank of Korea (BOK) released a group that aims at giving legal advice to the central bank-issued digital currency (CBDC). The group would help to review and resolve any such legal issues which would lead to the issuance of any digital currency in the coming future.

What is CBDC?

Central Bank Digital Currency or CBDC is basically a digital form of the local reserved currency issued by the government. CBDC is a lot different than the conventional cryptocurrency or any virtual currency because the government legally adopts it. The Bank of England was the first to take the initiative of this newly formed idea of CBDC. The Central Bank of Sweden considered being one of the first banks to implement CBDC in its country. In brief, CBDC is more likely to be called a centralised platform when compared to the decentralised Blockchain platform.

Considerations of Bank of Korea Over CBDC

Before the launch of the group, the Bank of Korea (BOK) launched a new 22-month pilot program for the Central Bank Issued Digital Currency in April. The program re-evaluated all the CBDC policies. The plan was a result of the insecurity of the South Korea central bank. This was after seeing that power giant like the USA, and most importantly, its neighbor Japan were rampantly developing their plans in the digital market. With the digital Yuan of China and the digital Dollar of the US emerging in the markets, the competition seems to heat up.

Previously, the Bank of Korea has shown its doubtfulness about the CBDCs, and sources say that they have no plans to issue any digital currency. One of the BOK staff noted that the need to issue any digital currency is still uncertain. The reason behind uncertainty is the demand for the cash currency is readily high, and most people prefer it. However, they need to take quick steps if the future of the market changes abruptly.

However, according to the central bank, the panel consisted of law practitioners and legal professors. He further added that most importantly, lawyers who would impart their advice in case any legal issue arises. Bank of Korea emphasized on the fact that they aren’t issuing any digital currency as of now. According to BOK’s announcement, this new council held for a total of 12 months.

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