Details of future currency issuance, such as denominations and characteristics, will be determined in Executive Regulations, a parliamentary committee has disclosed.
The Second Standing Committee of the parliament has recently concluded its study on the bill for the Currency Issuance Legal System. President Chan Chak Mo of the committee disclosed to a related press conference that the bill will cover both physical and digital currencies.
Regarding the details of issuance, the type, denominations and characteristics of currencies will be determined by Executive Regulations. However, the Chief Executive will be authorized to determine the initial amount and subsequent addition of currency issued by the issuance of an Executive Dispatch.
The bill has room for the issuance of currency in digital form, which will be clarified with special laws or regulations.
Chan disclosed that the committee had questioned the government if the determination of the amount by Executive Dispatches would in fact endanger the rigor of the practice. The government explained that the current proposal would allow for a quicker response to meet needs for more or less currency. It also assured the committee that systematic studies would be conducted prior to any issuance.
In contrast to the initial version of the bill, an additional clause exists in the current version, which requires all issuing entities to submit 100% back-up funds for the currency issued. Such entities includes both private banks and the government.
Individual people and non-financial businesses will not be required to reject transactions made using currency that could be counterfeit, Chan cited the government as saying.
