- by GI Magazine
- Sep 30, 2022
SHANGHAI, July 25 (Reuters) - A top central bank official was quoted by state media as saying on Sunday that China will treat privacy and personal information with the utmost respect when utilizing the digital Yuan. Beijing is encouraging the broader adoption of e-CNY. According to Mu Changchun, director-general of the central bank's Digital Currency Research Institute, the limited anonymity of the digital Yuan is a critical component that provides reasonable anonymous transactions.
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.
According to Reuters, to modernize their financial systems, stave off competition from crypto currencies 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 programs, some towns provided free digital cash in May to stimulate consumption and aid companies hurt by pandemic curbs, the source claims.