Security & Future
Vol. 8 (2024), Issue 2, pg(s) 45-48

NATIONAL AND INTERNATIONAL SECURITY

The effect of central bank digital currencies on asset confiscation

  • 1 Law Department, New Bulgarian University, Sofia, Bulgaria

Abstract

The purpose of the article is to assess the ramifications of the introduction of retail Central Bank Digital Currencies (CBDC) in the field of asset recovery. Through systemic legal analysis, it strives to foresee benefits and challenges. The piece argues that since retail CBDC customer accounts are with the central banks, there is a potential for improved efficiency in asset freezing, seizing and confiscation, including international cooperation, as central banks may act as turnkey operators in the process. Further, there are identifiable benefits in the disposal phase. Possible programmable features and privacy considerations are among the challenges, along with the sheer volume of information that needs processing in asset tracing. The value of this article lies in the assessment of the effect of fundamental changes associated with the introduction of retail CBDC in the field of asset recovery.

Keywords

References

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