Central Bank Digital Currency:

legal aspects related to its issuance and the right to privacy

Authors

Keywords:

CBDC. Legislative change. Right to privacy. LGPD. Legal system.

Abstract

The article analyzes legal aspects of the Central Bank Digital Currency (CBDC) institute that need to be addressed in order to allow its implementation in Brazil. The main problem of the research concerns  the existence of a law as a requirement to issue the CBDC and the compatibility of this instrument with the right to privacy, especially in the face of the LGPD (Brazilian General Data Protection Law). Through the hypothetical-deductive methodology, the need of a law and the compatibility of the CBDC with the LGPD were hypothesized. Based on the specialized literature and legislative research, it was concluded that the hypotheses were confirmed, but it was found that, in relation to the right to privacy, it would be advisable to issue specific legislation to make it compatible with the CBDC instrument.

Author Biographies

Leandro Sarai, AGU

Especialista em Direito Empresarial e mestre e doutor em Direito Político e Econômico pela Universidade Presbiteriana Mackenzie (UPM). Professor credenciado da Escola da Advocacia-Geral da União. Procurador do Banco Central. E-mail: leandro.sarai@yahoo.com.br. Orcid: https://orcid.org/0000-0001-6742-1051

 

 

Luiz Eduardo Galvão Machado Cardoso, UPM

Mestre e doutorando em Direito pela Universidade Federal da Bahia (UFBA). Procurador do Banco Central. E-mail: luizcardoso84@hotmail.com

References

AHMAR, Gina. Digitalizing the dollar: privacy considerations and policy prescriptions for a U.S. central bank digital currency. Hasting Business Law Journal. Vol 18, nº 1. Winter, 2021.

ANDOLFATTO, David. Some thoughts on central bank digital currency. Cato Journal. Vol. 41, Nº 2 (Spring/Summer 2021), p. 346.

BIS. Central bank digital currencies: ongoing policy perspectives. May 2023. Disponível em: https://www.bis.org/publ/othp65.pdf Acesso em: 21 jun. 2023.

BIS. Central bank digital currencies: user needs and adoption. September 2021. Report nº 3 Disponível em: https://www.bis.org/publ/othp42_user_needs.pdf Acesso em: 21 jun. 2023.

CHIU, Iris H-Y. Central Bank Digital Currency for the cryptoeconomy: an experimental proposal based on the European single market and institution-building. California Western International Law Journal. Vol. 51, nº 2, Spring 2021.

HSU, Jason; TSAI, Lindy. An alternative monetary system reimagined: the case for Central Bank Digital Currency. California Western International Law Journal. Vol. 51, nº 2, p. 328, 2021.

MEZZAROBA, O. MONTEIRO, C. S. Manual de metodologia da pesquisa no direito. 5.ed. São Paulo: Saraiva, 2009.

REENIE, Ellie; STEELE, Stacey. Privacy and emergency payments e a pandemic: how to think about privacy and a Central Bank Digital Currency. Law, Technology and Humans. Vol. 3, nº 1, p. 6-17, 2021.

SAJOVIC, Kristina. An evaluation of the legal grounds and financial system implications of the introduction of central bank digital currency – an EU law perspective. Trinity College Law Review, 25, 2022, p. 85-96.

SARAI, L. & SANTOS, M. M. As inovações regulatórias do sistema financeiro. Revista De Direito Bancário Do Mercado De Capitais E Da Arbitragem, v. 96, p. 49-59, 2022.

SELGIN, George. Central Bank Digital Currency as a potential source of financial instability. Cato Journal. Vol. 41, nº 2, Spring/Summer 2021.

STYNES, Odhran. Bringind the euro into the twenty-first century: key legal issues for the European Central Bank to consider in the development and issuance of a European central bank digital currency. University College Dublin Law Review. Vol 21. 2021.

Published

2023-10-09

Issue

Section

Economic Power and its legal limits