China will limit the transaction volumes of users of the digital yuan by levels of identification

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The NBK Digital Currency Institute stated that digital wallets will be limited in transaction volume based on the level of detail provided by the user.

The head of the Digital Currency Institute of the People’s Bank of China (PBC) Mu Changchun said at the Hong Kong Fintech Week conference that testing of the state digital currency has already been successfully carried out in more than ten regions of China, the volume of transactions amounted to 150 million yuan.

He added that the operators of the state digital currency in China could
offer clients have four types of e-wallets with different levels of privileges. To get a wallet with the least privileges, the user just needs to provide the operator with a phone number. In this case, the People’s Bank of China will have minimal information about the transactions of the user of this type of wallet. The daily transaction amount for the user who only reported the phone will be limited to 5,000 yuan, and the annual turnover will be 50,000 yuan. The user can open a digital wallet with the highest privileges without restrictions on the volume of transactions, only by passing personal identification at the bank’s cash desk.

The head of the NBK Institute of Digital Currency assured that digital yuan wallets would collect less transaction data than traditional electronic payment services. The People’s Bank of China will only provide information to third parties or other government agencies if required by law.

In September, China said it was testing its national digital currency in the city of Sinai, which has a population of over 6 million.
The experiments of the Chinese authorities with the digital currency of the Central Bank have gone beyond China. In November, the People’s Bank of China announced the launch of a pilot project for testing the state digital currency with the Hong Kong regulator. Despite the accelerated introduction of the digital yuan, the problems with its use for criminal purposes have not been resolved. Recently, China announced the first case of money laundering through the state digital currency.

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