{"id":208202,"date":"2021-03-22T20:00:00","date_gmt":"2021-03-22T17:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/chinas-digital-yuan-will-offer-best-privacy-protection-says-official\/"},"modified":"2021-03-22T20:00:00","modified_gmt":"2021-03-22T17:00:00","slug":"chinas-digital-yuan-will-offer-best-privacy-protection-says-official","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/chinas-digital-yuan-will-offer-best-privacy-protection-says-official\/","title":{"rendered":"# China\u2019s digital yuan will offer best privacy protection, says official"},"content":{"rendered":"

“# China\u2019s digital yuan will offer best privacy protection, says official <\/strong>”
\n<\/p>\n

Chinese authorities are willing to ensure maximum user privacy for the country\u2019s central bank digital currency, or CBDC, according to an official at the People\u2019s Bank of China.<\/p>\n

Mu Changchun, head of the People\u2019s Bank of China\u2019s digital currency research institute, spoke of China\u2019s digital yuan privacy capabilities at the 2021 China Development Forum on Sunday, local news<\/a> agency Sina Finance reported<\/a>.<\/p>\n

Mu stated that a completely anonymous CBDC \u201cis not feasible\u201d because a national digital currency must meet requirements related to Anti-Money Laundering, Counter-Terrorist Financing and anti-tax evasion. However, that doesn\u2019t mean that China\u2019s digital yuan lacks user privacy, he assured.<\/p>\n

The so-called \u201ccontrollable anonymity\u201d app<\/a>roach is a key feature of China\u2019s digital yuan, meaning that the government is providing certain tools to ensure maximum user privacy and financial security in conjunction with AML measures, Mu said. He stressed that telecom operators \u2014 which are involved in the research and development of the digital yuan \u2014 are not allowed to disclose personal data and phone numbers of users to third parties, including the central bank.<\/p>\n

Third parties like e-commerce platforms are also not able to access the personal data of digital yuan users, as customer payment information is encrypted in the form of a sub-wallet, Mu explained. Additionally, the digital yuan features a wide number of technical capabilities to ensure privacy, including ID anonymization technology<\/a> and a personal data protection system and internal control management mechanism in accordance with relevant Chinese laws, the executive noted.<\/p>\n

In order to protect \u201creasonable\u201d anonymity needs, the PBoC is also planning to adopt a CBDC design that enables anonymous digital yuan transactions in small amounts, Mu reportedly claimed. \u201cThe digital renminbi adopts a design of small amounts anonymous, keeping large amounts traceable,\u201d he said.<\/p>\n

\u201cIn short, the protection of user privacy by digital renminbi is the highest among the current payment tools,\u201d Mu concluded.<\/p>\n

As previously reported by Cointelegraph, many global jurisdictions like the United States have considered user privacy issues as one of the biggest problems of a CBDC. According to the European Central Bank\u2019s digital euro public consultation<\/a>, user privacy is the top requested feature for a European CBDC, followed by security and pan-European reach.<\/p>\n