The authorities in China are ready to completely ensure users’ privacy and protect their personal information for the country’s central bank digital currency or CBDC. This news has come out after the country moves ahead with tests of the currency popularly known as e-CNY.
Key Developments after China privacy with digital yuan
- Mu Changchun, head of the Digital Currency Institute at the People’s Bank of China, says that while people will use digital yuan, only a certain amount of their personal info would be collected, and they will restrict access to that info. He at a forum in Fujian, China, also said that ‘limited anonymity is a key feature to the digital.’
- Along with this, it will also prevent and combat all sort of illegal activities which includes terrorist financing, money laundering, and tax evasion.
- Neither the PBOC nor the various platforms that operate digital currency would be able to get the info regarding the trading.
- The data would only be used by the authorities when they find it crucial to investigate transactions that might be suspected of violating laws.
- As per Mu, the digital yuan is the safest among all other existing digital payment tools.
- Just like banknotes and coins, even e-CNY, which is the digital version of fiat currency and is issued by PBOC, can be used to buy gold and convert foreign currency.
Previously, it was reported by Coin telegraph that several global jurisdictions such as the US, have considered the threat to users’ privacy as one of the major problems of CBDC.
Back in May 2022, several cities distributed free digital cash to help businesses and revive consumption that was affected by pandemic curbs. Also, e-CNY is expected to boost the effectiveness of government policies and transparency in the future.