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China promises information safety and privacy when adopting digital yuan

Image: Reuters Berita 24 English - As Beijing pushes for increased e-CNY use, a top central bank official was quoted by state media as sayin...


Image: Reuters

Berita 24 English - As Beijing pushes for increased e-CNY use, a top central bank official was quoted by state media as saying on Sunday that China will fully respect privacy and secure personal information when utilising the digital yuan.

The digital yuan's limited anonymity enables reasonable anonymous transactions, according to Mu Changchun, director-general of the central bank's Digital Currency Research Institute.

Mu was reported by the Securities Times as saying at a symposium, "On the other side, it also prevents and combats unlawful activities such money laundering, terrorist financing, and tax evasion, maintaining the need for financial security."

In terms of creating and releasing a central bank digital currency (CBDC), the People's Bank of China is in the lead. The e-CNY will be a traceable alternative to notes and coins.

To modernise their financial systems, stave off competition from cryptocurrencies like bitcoin, and speed up domestic and international transfers, several central banks are considering creating CBDCs.

China's efforts are among the most advanced in the world, and in recent years, the nation has conducted numerous trials and pilot projects of various payment scenarios.

Mu said that anything that may be purchased using banknotes and coins can be done so using the e-CNY, the PBOC's digital counterpart of fiat currency.

"Banknotes and coins can convert foreign currencies and buy gold," he stated. "The e-CNY can do the same."

With more e-CNY uses anticipated in the future to increase transparency and the efficacy of governmental programmes, some towns provided free digital cash in May to stimulate consumption and aid companies hurt by pandemic curbs.


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