CBDC, china digital currency, chinese digital currency, Digital Currency, Digital Yuan, PBOC, Privacy, wallet privacy

Privacy has been a discussion that has not gone unnoticed when it comes to the forthcoming launch of the digital yuan. The head of the People’s Bank of China-run Digital Currency Research Institute had firmly pointed out that anonymity cannot be guaranteed at all.

Feature Seeks to Avoid Tax Evasion and Finance Terrorism

During an interview with the Securities Times, Ma Changchun told the 2021 China Development Forum that a fully anonymous central bank digital currency (CBDC) is impossible.

The reason, said the official, is that the government needs to make it compliant with the anti-money laundering (AML), know-your-customer (KYC), and counter-terrorist financing (CTF) measures.

Per the official, such transactions should also be scrutinized to avoid tax evasion schemes through the upcoming Chinese CBDC, developed by the PBoC.

However, Ma clarified that there would be a “controllable anonymization†technology implemented in the digital yuan.

Although he didn’t explain in-depth the “controllable anonymization†concept, Ma pointed out that such anonymity is the one that it’s commonly used for privacy consumer protection purposes.

The Role of the Telecom Providers

Still, he explained how the digital yuan wallet could work out with KYC measures implemented:

The head of the Digital Currency Research Institute also clarified which would be the role of the domestic telecommunication providers in the digital yuan’s development process:

What do you think about the “controllable anonymization†mentioned by the Chinese official? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

RELATED NEWS

Morgan Stanley Says Central Bank Digital Currencies Not a Threat to Cryptocurrencies

Major investment bank Morgan Stanley believes that central bank digital currencies are not a threat to the existence of cryptocurrencies. The bank believes that both types of digital currencies can coexist because they serve different purposes and have different appeals. Cryptocurrencies and CBDCs Can Coexist Morgan Stanley’s analysts, including chief economist Chetan Ahya, discussed the […]

Xem chi tiết: Morgan Stanley Says Central Bank Digital Currencies Not a Threat to Cryptocurrencies

Federal Reserve Bank President Says Bitcoin Is Clearly a Store of Value

The Federal Reserve Bank of Dallas president says bitcoin is clearly “a store of value.†Emphasizing the differences between cryptocurrencies, like bitcoin, and central bank digital currencies, he said the latter “won’t necessarily be a store of value.†Fed Bank Chief Calls Bitcoin a Store of Value The president of the Federal Reserve Bank of […]

Xem chi tiết: Federal Reserve Bank President Says Bitcoin Is Clearly a Store of Value

China Calls Bitcoin and Stablecoins ‘Investment Alternatives’ for the First Time Since Crypto Crackdown

After the well-known crypto crackdown launched by the Chinese government four years ago, it seems there is now a change in the tone from the country’s central bank. At least that’s what has been suggested recently by the deputy governor of the People’s Bank of China (PBoC). Central Bank Clarifies Its Regulatory Framework on Cryptos […]

Xem chi tiết: China Calls Bitcoin and Stablecoins ‘Investment Alternatives’ for the First Time Since Crypto Crackdown

Bank of England and HM Treasury Launch a Central Bank Digital Currency Taskforce

Her Majesty’s Treasury and the Bank of England have revealed the establishment of a central bank digital currency (CBDC) taskforce. According to the announcement, the group’s purpose aims to explore a potential UK CBDC. UK Entities Invoke a CBDC Taskforce to Explore a Central Bank-Issued Digital Currency Central bank digital currencies (CBDCs) have been popping […]

Xem chi tiết: Bank of England and HM Treasury Launch a Central Bank Digital Currency Taskforce

Brazil’s Central Bank President Expects to Have News on a CBDC ‘Soon’

The largest country in Latin America could have its central bank digital currency (CBDC) soon, as the Brazilian central bank is taking steps towards creating it. Recently, the Banco Central do Brasil (BCB) president hinted at the possibility of having news on the matter “soon.†No Decision Has Been Made on Whether the Digital Real […]

Xem chi tiết: Brazil’s Central Bank President Expects to Have News on a CBDC ‘Soon’

US Government Concerned China’s Digital Yuan Could Threaten Dollar as the World’s Dominant Reserve Currency

The U.S. government is reportedly concerned that China’s digital yuan could threaten the U.S. dollar’s status as the world’s dominant reserve currency. Officials at the Treasury, State Department, Pentagon, and National Security Council are increasing their efforts to understand the implications of China’s central bank digital currency. Digital Yuan Could Be a Threat to US […]

Xem chi tiết: US Government Concerned China’s Digital Yuan Could Threaten Dollar as the World’s Dominant Reserve Currency

Bitcoin Bull Mike Novogratz Warns of ‘Existential Crisis’ if the US Fails to Create Digital Dollar

Mike Novogratz, the CEO of Galaxy Digital and bitcoin bull has warned that the United States’ failure to have its own digital currency could be an “existential crisis.†However, the CEO says the country’s fate is still in its hands. Novogratz made these comments a few days after former U.S. Secretary of State, Mike Pompeo […]

Xem chi tiết: Bitcoin Bull Mike Novogratz Warns of ‘Existential Crisis’ if the US Fails to Create Digital Dollar

An ECB Board Member Attacks Bitcoin, Says It ‘Does Not Fulfill the Basic Properties of Money’

Isabel Schnabel, a board member with the European Central Bank (ECB), has attacked bitcoin claiming the crypto asset “does not fulfill the basic properties of money.†She also describes bitcoin as a “speculative asset without any recognizable fundamental value and is subject to massive price swings.†Schnabel also surmises that trust in “cryptocurrencies might rapidly […]

Xem chi tiết: An ECB Board Member Attacks Bitcoin, Says It ‘Does Not Fulfill the Basic Properties of Money’

Swedish Central Bank Releases the First Study About Its CBDC E-Krona Pilot

Paypal Cofounder Peter Thiel Thinks China Is Using Bitcoin as Financial Weapon Against the US

Starbucks Customers Can Now Pay With Bitcoin via Bakkt’s Digital Wallet App

The Fed Plans to Unveil Digital Dollar Prototypes in July

Soros CIO: Central Bank Digital Currencies a Real Threat to Crypto but Won’t Permanently Destabilize Bitcoin

Payment Giant Visa Integrates USDC Stablecoin Support for Settlement

The Fed Plans to Unveil Digital Dollar Prototypes in July

Microsoft President Says the World Is Best Served When Currencies Are Issued and Backed by Governments