Bank of Korea Accelerates CBDC Research... Payment and Settlement System Conference to be Held on the 18th

Research on Legal and Technical Issues in Designing Digital Currency

[Asia Economy Reporter Jang Sehee] The Bank of Korea announced on the 17th that it will hold an online payment and settlement system conference on the 18th under the theme "Key Issues Related to Central Bank Digital Currency (CBDC) and Challenges for Central Banks."

At this conference, the concept and impact of central bank digital currency will be examined, along with legal and technical issues in designing CBDCs, and challenges for central banks will be explored.

The Bank of Korea explained that while CBDCs can become a convenient and secure new payment method based on the official authority of central banks, it is necessary to carefully analyze the potential for financial instability caused by the introduction of CBDCs before deciding whether to adopt them.

In the first session, Lee Myung-hwal, Senior Research Fellow at the Korea Institute of Finance, will present on the topic "Understanding CBDC and Its Impact," introducing the definition of central bank digital currency and cases from major countries.

The second session, titled "Legal Issues Related to CBDC," will feature Professor Jung Kyung-young from Sungkyunkwan University School of Law, who plans to discuss judicial and public law issues that may arise with the introduction of CBDCs. The session will review the legal relationships of CBDC transactions and introduce related civil and commercial law issues. Additionally, criminal law issues to consider in cases of forgery and counterfeiting, as well as legal issues related to consumer protection and personal data protection, will be discussed.

In the third session, titled "Technical Issues Related to CBDC," Kim Ki-young from the Electronics and Telecommunications Research Institute will take the stage. He will review the current status of CBDC research projects and introduce key technical issues in CBDC design. Many major central banks conducting CBDC research projects have adopted blockchain as the underlying technology for reasons such as secure remittance, transaction transparency, and interoperability with other digital assets.

Finally, the fourth session, "Issues Related to CBDC and Challenges for Central Banks," will be led by Shin Hyun-song, Head of the Research Department at the Bank for International Settlements (BIS), who will present challenges for central banks related to CBDCs, including monopoly and oligopoly concerns, personal data protection, and improvements in cross-border payments.

This content was produced with the assistance of AI translation services.