Principles of Monetary Law: Classical vs Modern Approach

Abstract

The subject of analysis in this paper is the determination of the importance, value, and reach of the principles of monetary law through the prism of looking at their original field of application and social justification and the period of early development, and then the final establishment of this positive legal branch of the legal order, which undoubtedly determined the axiology and confirmed the validity of the academic and practical study of this scientific discipline. In the process of implementing the principles of monetary law, the legislator in the circumstances of the information revolution may face not only challenges related to the impact of decentralized financial technologies on the protection of the rights of monetary users and public monetary management but also those challenges related to monetary innovations carried out by the central bank itself as the bearer of monetary sovereignty. In our opinion, central bank digital money represents an ingenious solution of a compromise nature that will simultaneously allow the central bank to preserve its position as the guardian of monetary sovereignty while at the same time legalizing the use of private digital money that is already accepted in some monetary jurisdictions as legal tender. A big challenge in preserving the principle of lex monetae is the idea of ​​a kind of incorporation of software code into a legal norm, which is a complex multidisciplinary issue that lawyers cannot solve independently. Still, it must cooperate with other experts in the economic and technical professions. At the same time, this process must take the form of a specific and legally rounded international initiative, because only by the simultaneous application of primary monetary legislation (which has been regulating the lex monetae in an identical way for decades) and secondary monetary legislation (which deals with the issue of its digitization) at all levels of state management can ensure monetary stability as a global public good. In the absence of coordinated international cooperation between central banks and other subjects of international monetary law, monetary instability would easily spill to another monetary jurisdiction.