Bank of Korea Governor Shin Hyun-song said individual transaction records and personal data under Project Han River, a deposit-token-based digital currency initiative, are managed by commercial banks, as concerns mount over potential surveillance of personal transactions through central bank digital currency (CBDC). The remarks restated the scope of the central bank's data management and its protection framework amid continuing controversy over privacy.
Shin made the comments on the 12th in response to a question from Rep. Lee Jun-seok of the Reform Party during a parliamentary audit by the National Assembly's Finance, Economy and Planning Committee. Lee pressed on access rights to transaction data and the personal data protection framework, asking whether deposit-token transaction records are logged in a ledger managed by the central bank and who decides when investigative agencies or the National Tax Service request financial transaction information.
"The institutional digital currency operated by the Bank of Korea is used for payments and settlements between financial institutions, and individual customers' transaction records and personal data are managed by their respective banks," Shin said. The central bank handles interbank settlement and clearing and is not structured to directly manage individuals' transaction data, he said.
Banners opposing the introduction of CBDC had been hung in front of the Bank of Korea headquarters, reflecting concerns about the possibility of government surveillance of personal transaction data. The central bank also said in a recent blog post that Project Han River is unrelated to the introduction of a retail CBDC and that customer identity information is managed by their banks.