The government is trying to introduce CBDC into various areas of everyday life, but officials are wary of using the state-owned cryptocurrency due to possible surveillance. In addition, according to government officials, there are few places in the country where the national digital currency can be used. Chinese officials also complain that they cannot earn interest if they store e-CNY in applications, as well as purchase financial products using CBDC.
According to Cheung Kong Dongyan, a research fellow at the Beijing Graduate School of Business, authorities need to do more to ensure a balance between privacy and security. The expert believes that the line between information tracking and information security should be carefully considered before expanding the use of a national digital currency to all provinces.
The former governor of the People's Bank of China (PBOC), And Gan, shares a similar opinion. The ex-official believes that CBDC privacy is the biggest challenge of the digital asset era, but the digital yuan is able to maintain privacy through the use of “controlled anonymity,” which means there is no surveillance of small transactions and payments.
Earlier, the Hong Kong Monetary Authority (HKMA) began to compare the benefits of retail and wholesale versions of government stablecoins: how the Central Bank's digital currency could influence the economy of this special administrative region of China.
Source: Bits

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