South Korea opposition party demands strict privacy laws for CBDC

The party’s stance arrives as the Bank of Korea accelerates the second phase of Project Hangang, a testing initiative focused on wholesale digital currency and tokenized deposits. While the central bank maintains that Project Hangang is distinct from a retail-facing digital currency, Jang insists that payment efficiency should not be prioritized over fundamental consumer protections. He specifically questions whether future digital systems would allow the government to track individual transactions or impose expiration dates on personal funds.

Project Hangang, which currently involves nine commercial banks, operates within a regulatory sandbox to test programmable vouchers for government subsidies and student support. Although these trials use conditional payments for specific grants, Jang fears these mechanisms could set a precedent for broader control over private assets. The Bank of Korea has yet to set an official issuance deadline for a general-purpose digital currency, emphasizing that current research remains technical rather than a precursor to immediate adoption. Meanwhile, the opposition party continues to challenge the broader digital-asset agenda, including proposed ownership limits and existing cryptocurrency taxation frameworks.