China Promises Privacy And Data Protection In The Use Of Digital Yuan 2022
- Information Technology
- July 26, 2022
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China protects privacy in the use of the digital yuan as Beijing encourages greater adoption of the Chinese electronic yuan.
Shanghai: China will fully respect privacy and protect personal information in the use of the digital yuan, state media quoted a senior central bank official as saying on Sunday, as Beijing encourages further adoption of the electronic yuan.
Mo Changchun, director general of the Central Bank Digital Currency Research Institute, said limited anonymity is a key feature of the digital yuan, noting that it ensures reasonable anonymous transactions.
“On the other hand, it prevents and combats illegal activities, including money laundering, terrorist financing, and tax evasion, maintaining the need for financial security,” Mo was quoted as saying by the Securities Times in a forum.
The People’s Bank of China is a pioneer in the development and issuance of a central bank digital currency (CBDC), which in the case of e-CNY will be a traceable alternative to banknotes and coins.
Other central banks are looking to develop central bank currencies to modernize their financial systems, fend off competition from cryptocurrencies like bitcoin, and speed up domestic and international payments.
China’s efforts are among the most advanced globally, and the country has carried out various tests and pilot schemes for different payment scenarios in recent years.
Mu also said that e-CNY, the digital version of paper money issued by the People’s Bank of China, can be used to buy anything that can be bought with bills and coins.
He said banknotes and coins can buy gold and exchange currency, just like the Chinese electronic yuan.
In May, some cities distributed free digital cash to revive consumption and help businesses affected by pandemic restrictions, and more applications of Chinese e-yuan are expected in the future to improve the transparency and effectiveness of government policies.
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