Publication date: 03.06.2024
Legal Regulation of Central Bank Digital Currencies (CBDCs)
Introduction
Central bank digital currencies (CBDCs) are becoming an increasingly relevant topic in the modern financial system. CBDCs are digital counterparts to traditional currencies that are issued and controlled by a central bank. They can provide faster, cheaper, and safer payments, as well as support financial inclusion. However, the introduction of CBDCs requires the development of appropriate legal regulation to ensure their efficient operation and user protection. In this article, we will analyze the main aspects of legal regulation of CBDCs.
International Framework
Recommendations of International Organizations
- Bank for International Settlements (BIS): The BIS develops guidelines for central banks on the implementation of CBDCs, including technical standards, security issues, and legal aspects.
- International Monetary Fund (IMF): The IMF provides analysis of the impact of CBDCs on macroeconomic stability, the financial system, and international cooperation.
International Standards
- Financial compliance (AML/CFT): CBDC implementation must comply with international anti-money laundering and counter-terrorist financing standards set by the FATF (Financial Action Task Force).
- Payment Systems: CBDCs must comply with the standards for the security and efficiency of payment systems developed by the BIS and other international organizations.
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National Legislation
Legislative Acts
- Central bank laws: Many countries are amending their central bank laws to include provisions for issuing and regulating CBDCs.
- Laws on Payment Systems: Regulate the use of CBDCs in payment systems, including security, data protection, and consumer protection requirements.
Administrative Mechanisms
- Regulatory Authorities: Central banks and other financial regulators establish rules and procedures for implementing and monitoring CBDCs.
- Licensing and Supervision: Establishes requirements for licensing of CBDC market participants, as well as mechanisms for supervising their activities.
Protection of Consumer Rights
Privacy and Data Protection
- GDPR principles: In the European Union, CBDC implementation must comply with the requirements of the General Data Protection Regulation (GDPR).
- Anonymity and Transparency: A balance must be struck between protecting user privacy and providing transparency to prevent illegal transactions.
Transaction security
- Cybersecurity: An important aspect is to ensure the cybersecurity of the CBDC, including protection against hacker attacks and fraud.
- Technical Standards: Setting high technical standards to ensure safe and secure transactions.
Economic and Social Aspects
Financial Inclusion
- Accessibility: Ensure that CBDCs are accessible to all segments of the population, including disadvantaged groups and regions with limited access to banking services.
- Educational Programs: Conducting educational programs to increase the financial literacy of the population on the use of CBDC.
