Jeremy Fleming, head of the UK Government Communications Center, fears that the digital yuan could be used to collect user information and control international transactions.
Jeremy Fleming, head of the Government Communications Headquarters (GCHQ), an electronic intelligence service that protects information from government agencies and the British army, is concerned about the rapid development of the digital yuan. Fleming believes that if the digital currency of the People’s Bank of China (PBOC) is used in other countries, it could have a bad effect on the state of the entire international monetary system.
Fleming mentioned the NBK’s intention to test the state stablecoin during the Beijing 2022 Winter Olympics. This means that the digital yuan will become available not only to local residents, but also to foreign tourists along with athletes. They will be able to install a digital yuan wallet that can be used to pay for goods and services during the event.
Fleming believes that already in its current form, China’s digital currency can be used to collect user data, as well as to control cross-border transactions. The GCHQ executive is alarmed by the rapid pace of development and testing of the digital yuan in recent years. According to him, some central banks are still at the stage of exploring the possibilities of their own digital currency, other central banks have already launched it, but no country has yet developed a more advanced pilot digital currency project, except China. Therefore, Fleming said that caution should be exercised when using the digital yuan due to the lack of clear regulatory rules governing the functioning of central bank digital currencies at the international level.
“China is making a hidden march. We are talking about large investments in the digital yuan, which are made both openly and secretly. China is starting to make a real impact on the tech and digital industries. We have to decide how to react to all of this, ”said Fleming.
Recall that in July, US senators expressed similar concerns and demanded that the US Olympic Committee ban the use of the digital yuan at the 2022 Winter Olympics.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
