China to respect privacy of digital yuan users, eyes more adoption China to respect privacy of digital yuan users, eyes more adoption
China is doubling efforts to increase digital yuan adoption and usage by creating tailor-made products for the currency.
2 min read
Updated: Jul. 25, 2022 at 11:58 am UTC
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A senior Chinese central bank official, Mu Changchun, said the country will respect digital yuan users’ privacy and protect their personal information, Reuters reported on July 25.
According to Changchun, the digital yuan has a limited anonymity feature that allows for reasonable anonymous transactions.
He said using the digital yuan “prevents and combats illegal activities including money laundering, terrorist financing, and tax evasion.”
The bank chief also reiterated that digital yuan users could use the currency to purchase anything. Changchun said:
Banknotes and coins can buy gold and convert foreign currency, so does the e-CNY.
Meanwhile, the privacy statement is surprising, considering China is believed to be developing its digital yuan to ensure it can monitor the financial activities of its citizens. This fear prompted three U.S. senators to propose a draft bill that bans digital yuan use by U.S. app stores.
Crypto enthusiasts generally distrust central bank digital currency (CBDC) projects because it allows the government to carry out financial surveillance.
China eyes more adoption
Chinese banks are doubling efforts to increase digital yuan adoption and usage by creating tailor-made products for the currency, Global Times reported.
Several local Chinese bank representatives at the 5th Digital China Summit in Fuzhou unveiled several e-currency products and services at the event.
According to a staff of China Construction Bank (CCB), knowledge about the digital yuan has risen compared to previous years.
CCB launched a digital yuan mobile application and presented a physical wallet for the digital currency at the event. Users can make payments with the card when it is finally available.
Other banks with branches in Fujian, including the Agricultural Bank of China (ABC), also launched initiatives to promote the use of digital yuan. An ABC employee said the bank has cooperated with local supermarkets to increase digital yuan usage.
Tech firms form digital yuan alliance
A group of tech firms and banks, including Huawei Technologies Co, Newland Digital Tech, and several state-owned banks, formed a Digital RMB Industry Alliance on July 24.
The first chairman of the alliance is Wang Jing of Newland Digital Tech.
Its goal is to promote the digital yuan’s development, share knowledge and technology, and develop innovative solutions.
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