Updated · Aug 15, 2022
China Promises to Protect Privacy in Using Digital Yuan
Updated · Jul 25, 2022
A high-ranking central bank official issued the promise at a forum on Sunday.
e-CNY and Privacy
China has vowed to protect private and personal data by using its new digital currency, the e-CNY. A senior official of the country’s central bank made the statement on Sunday.
Mu Changchun, Director-General of the apex bank’s Digital Currency Research Institute, says the e-CNY will guarantee some anonymity.
“On the other hand, it also prevents and combats illegal activities including money laundering, terrorist financing, and tax evasion, maintaining the need for financial security,” Mu said.
China has cracked down on cryptocurrencies, including bitcoin. As a government-sanctioned alternative, it introduced the e-CNY in 2020. Now the digital yuan is being used in over 20 cities. Beijing wants to extend its use beyond just payments for purchases.
In spite of its assurances, not everyone is convinced. In May, a group of US senators drafted a bill to prevent app stores from hosting US-based apps with support for the e-CNY. Dubbed the “Defending Americans from Authoritarian Digital Currencies Act,” the senators said it would protect the US from attempts at spying by the Asian country.
China is one of the first countries to introduce a central bank digital currency (CBDC). Others include:
- The Bahamas
- Saint Kitts and Nevis
- Antigua and Barbuda
- Saint Lucia.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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