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China Promises Information Safety,Privacy When Adopting Digital Yuan

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China Promises Information Safety,Privacy When Adopting Digital Yuan
26 Jul 2022
5 min read

News Synopsis

China will protect privacy and privacy information when using the electronic Yuan, according to sources from the central bank saying, Beijing is encouraging greater use of electronic CNY.

The limited anonymity is an important characteristic that is a hallmark of digital Yuan Mu Changchun, director general of China's central bank's Digital Currency Research Institute said the digital currency guarantees fair private transactions.

"On the contrary, it protects against criminal activities, such as money laundering as well as terrorist financing and tax evasion, while ensuring the need for security of financial transactions," sources confirmed.The People's Bank of China is the leading bank in the development and issuing of central bank digital currencies ( CBDC) that will, in the case of e-CNY can be secure replacement for coins and notes. Central banks in other countries are considering the possibility of developing CBDCs to modernize their financial systems, to fend off the threat of cryptocurrency like bitcoin and accelerate payments to international and domestic customers.

The efforts of China are one of the most sophisticated in the world, and China has been conducting various tests and pilot schemes for various payment options in recent times. Mu added that the electronic CNY which is the digital equivalent of the fiat currency issued from the PBOC can be used to purchase any item that is able to be purchased using coins and banknotes.

"Banknotes and coins can be used to buy gold, and also convert foreign currency and convert foreign currency, as does the electronic CNY," they added. In May, a few cities handed out digital cash for free to boost consumption and assist businesses affected by pandemic restrictions and the addition of more E-CNY applications anticipated in the future to improve the transparency and efficiency of policies by the government.

 

TWN In-Focus