Sunseop Jung, Legal Challenges in a Cashless Society – Focus on the Legal Tender’s Compulsory Acceptance, Korean Journal of Banking and Financial Law, Vol. 12, No. 1 (2019), pp. 195-235.
<Abstract>
In this paper, we first examine the institutional significance of the legal system in relation to the reduction of the use of cash, and second, examine the cash use of vulnerable groups, who are not familiar with the use of non-cash parties have agreed on other means of payment. The point of view of the law of money mentioned in this paper is that the use of parties have agreed on other means of payment, including legal tender, is based on the trust of the parties and the market. As for the first issue, it was confirmed that the mandatory acceptance of the legal tender is not an absolute concept. (i) Although restricting the mandatory acceptance of a coin can not be a direct solution for real problems such as abuse of wage payment methods, it may meaningfully suggest the judgment criteria for the method of reimbursement contrary to the good faith principle under the civil law. (ii) The relationship between the mandatory acceptance of the legal lender and the freedom of contract can only be recognized as a separate agreement on parties have agreed on other means of payment between the parties related, and the protection of the vulnerable class was considered as a matter of guaranteeing cash options as a means of payment. Regarding the second issue, whether to limit the use of cash over a certain amount is considered according to the legal policy of prevention of anti-money laundering or securing of tax sources, was considered as an issue to be judged in consideration of cost and benefits caused by preventing money laundering or securing tax sources. However, it was concluded that it is possible and necessary to introduce a cash rule that would force the use of cash under certain restrictive requirements, as seen in the Danish legislation.
<Keywords>
legal tender, mandatory acceptance, cash, cashless society
Sunseop Jung, Legal Challenges in a Cashless Society – Focus on the Legal Tender’s Compulsory Acceptance, Korean Journal of Banking and Financial Law, Vol. 12, No. 1 (2019), pp. 195-235.
<Abstract>
In this paper, we first examine the institutional significance of the legal system in relation to the reduction of the use of cash, and second, examine the cash use of vulnerable groups, who are not familiar with the use of non-cash parties have agreed on other means of payment. The point of view of the law of money mentioned in this paper is that the use of parties have agreed on other means of payment, including legal tender, is based on the trust of the parties and the market. As for the first issue, it was confirmed that the mandatory acceptance of the legal tender is not an absolute concept. (i) Although restricting the mandatory acceptance of a coin can not be a direct solution for real problems such as abuse of wage payment methods, it may meaningfully suggest the judgment criteria for the method of reimbursement contrary to the good faith principle under the civil law. (ii) The relationship between the mandatory acceptance of the legal lender and the freedom of contract can only be recognized as a separate agreement on parties have agreed on other means of payment between the parties related, and the protection of the vulnerable class was considered as a matter of guaranteeing cash options as a means of payment. Regarding the second issue, whether to limit the use of cash over a certain amount is considered according to the legal policy of prevention of anti-money laundering or securing of tax sources, was considered as an issue to be judged in consideration of cost and benefits caused by preventing money laundering or securing tax sources. However, it was concluded that it is possible and necessary to introduce a cash rule that would force the use of cash under certain restrictive requirements, as seen in the Danish legislation.
<Keywords>
legal tender, mandatory acceptance, cash, cashless society