Central Bank Digital Currency (CBDC) Law represents one of the most innovative and rapidly evolving areas of modern financial law in Georgia. The National Bank of Georgia (NBG) is actively working on the "Digital Lari" project, which involves implementing a digital form of the national currency as a direct liability of the central bank. This is not a cryptocurrency but an official legal tender that requires a clear legal framework. The introduction of CBDC aims to increase the efficiency of payment systems, improve financial inclusion, and digitize the economy. From a legal perspective, this process involves complex issues such as monetary sovereignty, personal data protection, and cybersecurity. For businesses, especially in the fintech sector, integration into the Digital Lari ecosystem presents new opportunities and challenges, requiring qualified legal advice to ensure regulatory compliance.
What does the Central Bank Digital Currency legal service cover?
Legal services related to CBDC focus on both analyzing the regulatory environment and legal validation of technological solutions. The service includes: interpreting the NBG's "Digital Lari" piloting and testing regulations; consulting financial institutions and tech companies on integration with the CBDC platform; defining the legal status of "programmable money" (Smart Contracts) and drafting agreements; adapting AML/CFT compliance systems for digital currency operations; assessing personal data protection impact (DPIA) to balance anonymity and transparency; and developing legal models for cross-border payment operations. Lawyers assist clients in participating in the NBG's "Regulatory Sandbox," which is essential for the legal launch of new financial products.
Common real-world scenarios
In practical activities, CBDC law becomes relevant during several key scenarios. The first is when a fintech startup wants to create a payment application using the digital lari as its primary asset, requiring specific licensing. The second scenario concerns commercial banks that must synchronize their banking systems with the NBG's digital infrastructure. The third scenario is international transactions where a company seeks to use CBDC to speed up foreign trade settlements, requiring comparative legal analysis of different jurisdictions. It is also common for government agencies to plan target social assistance through the digital lari, requiring strict legal control over the targeted use of funds. Each case requires an individual legal approach and risk management strategy.
Georgian Legal Framework
Legal regulation of CBDC in Georgia is based on the Organic Law of Georgia on the National Bank of Georgia, where amendments grant the regulator authority to issue a digital form of currency. Also vital is the Law of Georgia on Payment Systems and Payment Services, which defines the rules for electronic money and payment instruments. For data security, the Law of Georgia on Personal Data Protection and the Law of Georgia on Information Security apply. The NBG issues specific decrees and instructions regulating the emission, circulation, and obligations of the digital lari participants. A lawyer's assistance is essential for the correct interpretation of these complex norms to avoid conflict with existing financial legislation.
Step-by-step process when working with a specialist
The process begins with a legal analysis of the client's business model and compatibility with the CBDC. In the first stage, the lawyer assesses what type of authorization or license is needed for digital lari operations. In the second stage, internal policies and procedures are prepared, covering cybersecurity standards and KYC rules. The third stage involves communication with the NBG and, if necessary, submitting an application to the "Regulatory Sandbox." In the fourth stage, legal testing of technological solutions (e.g., digital wallets) and preparation of a compliance conclusion takes place. The process ends with full system launch and subsequent legal monitoring to respond to changing regulatory requirements.
Why choose Legal.ge?
CBDC and Digital Lari law is a completely new field requiring a unique synthesis of technological and banking law. On the Legal.ge platform, you will find specialists involved from the very first stages of digital currency implementation in Georgia with in-depth knowledge of NBG requirements. Our experts will help you legally structure complex technological processes, minimizing your risks in this innovative market. Through Legal.ge, you have the opportunity to receive consultation from the country's best fintech lawyers. Find your partner on Legal.ge and be the first to successfully utilize digital currency advantages in Georgia.
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