The People’s Bank of China said protecting anonymity has become one of the main challenges to be overcome on the way to the mass adoption of the digital yuan (e-CNY).
The Governor of the Chinese Central Bank, Yi Gang, believes that the need for the spread of digital currency by the Central Bank makes it necessary to seek a balance between protecting privacy and combating illegal activities.
Ghana recalled that e-CNY is mainly positioned as cash to “meet the needs of domestic retail payments”, to expand inclusive finance and improve the efficiency of the payment system. He added that the digital yuan was designed to “provide financial security protection through managed anonymity.”
The official explained: privacy is achieved by the fact that “the data associated with transactions is encrypted for storage.” In addition, “legal and natural persons are prohibited from arbitrary request for transactions or use of information about e-CNY without strict legal permission.” The Central Bank of China allows anonymous small transactions in the digital yuan.
The regulator’s interest in the anonymity of the state digital currency became apparent when the volume of transactions using the digital yuan exceeded 100 billion yuan (about $13.9 billion). CBDC is already in full use in 23 cities in China. These settlements include the city of Macau, a special administrative region of the PRC, where the casino industry is concentrated. This locality went further than others and decided to give the state digital currency the status of legal tender.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
