Chinese CBDC To Offer More in Privacy Than Other Digital Payment Platforms
China’s official digital currency, the Digital Yuan, will surpass other digital payment processors and platforms in terms of user privacy. The Central Bank Digital Currency issued by the People’s Bank of China (PBoC) will offer users the highest privacy protocol in the Chinese digital finance space, the Bank has said.
This news was revealed by the PBoC’s governor, Gang Yi during a virtual session on Tuesday. The virtual conference was organized by the Institute of the Bank of Finland. The conference marked the third decade anniversary of the Institute and had a number of key players in the world’s finance industry as virtual attendees.
Key Issues Discussed By the PBoC Governor
The session focused on the new digital payment technologies and how governments are adjusting to them. Speaking during his session, Gang noted that the digital payment space thrives on user privacy and that it is a key factor to its success. He then said that the PBoC’s CBDC, the Digital Yuan, would surpass other payment apps and platforms in China when it comes to user privacy. He said that the CBDC is created on a privacy-oriented policy that will help it to thrive in the modern digital finance space.
Gang mentioned that while China is ready and working towards the global adoption of its Digital Yuan, it recognizes the need for the highest level of security for users’ personal information and the safety of digital wallets and transactions made through them. He stated that the Digital Yuan is built on a protocol that uses relevant regulations to drive technological features in promoting complete anonymity for small transactions.
Gang said that the PBoC will not interfere in small transactions but will only intervene when large funds are being transacted. This, he argued, increases the appeal of anonymity and privacy which is one of the main attractions of the digital payment system.
On the issue of user data collection, the PBoC governor said that the Chinese apex bank would only ask for the barest information required by law and would not take as much as the present payment platforms require. Details of his speech were captured in a translation by Cointelegraph.
Global Adoption of CBDCs
Since the idea of digital tokens backed by the Central Banks of countries was conceived, governments around the world have set up project teams to research the possibility of creating CBDCs and move towards gradual adoption.
China became the first country in the world to release its CBDC and promote immediate adoption across the country. Experts say that the curious success that the Digital Yuan has achieved within a few months of its launch is not unconnected to the cashless system that was already successful in China, and driven on by the Chinese government;’s ban on cryptocurrencies in the country.
China has achieved over 140 million Digital Yuan wallet registrations and a market volume of $9.7 billion for the digital token. All these within three months of launching. Although, for now, the Digital Yuan is used for consumer purchases, the PBoC has plans to go on a global-scale adoption.
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