South Korea opposition warns of privacy risks in CBDC rollout

South Korea’s opposition People Power Party has voiced strong opposition to the rollout of a central bank digital currency (CBDC) until comprehensive legal and institutional safeguards are established. Party leader Jang Dong-hyeok stated that payment convenience and efficiency do not justify rushing the technology if it compromises privacy and consumer rights.

Jang raised concerns regarding the potential for increased surveillance, questioning how far authorities could trace transactions and whether programmable money could be used to restrict where or when funds are spent. He also emphasized the need to guarantee citizens' rights to choose their preferred form of currency and protect personal financial data.

The political pushback comes as the Bank of Korea advances the second phase of ‘Project Hangang,’ a pilot program involving digital currency and tokenized deposits. While the project currently focuses on wholesale central-bank money and tokenized customer deposits through commercial banks, the opposition warns that without strict regulations, the technology could become a tool for social and financial control.