Digital Yuan Statement From People's Bank Of China Official

Digital Yuan Statement From People's Bank Of China Official

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MU Changhun, head of the Digital Currency Research Institute, spoke about China's digital yuan work at the China Development Forum the other day. 

Mu Changhun, head of the people's Bank of China's Digital Currency Research Institute, said the central bank would adopt the principle of maximum user privacy in its work on digital currencies.

Mu Changhun's Remarks

Mu Changhun, head of the people's Bank of China's Digital Currency Research Institute, spoke about China's digital yuan work at the China Development Forum the other day, according to Sina Finance, a local news agency. Changhun said that their priority in CBDC work is the principle of confidentiality. He also noted that a fully anonymous CBDC study was not viable due to money laundering and terrorism financing issues. However, Changhun noted that this would not mean that the digital yuan lacks user privacy.

Controllable Anonymous Model

Mu Changhun introduced the controllable anonymous model of the digital yuan. He noted that this is a key feature for the digital yuan. It also said the government would provide maximum user privacy and financial security along with AML measures. Telecommunications operators involved in the research and development of the digital yuan will not share users ' phone numbers or even all relevant personal data with third parties, including the central bank, it was said.

Changhun believes that reasonable anonymity will give both users and the government an advantage. In addition, the people's Bank of China is also working on a CBDC model that supports digital yuan transactions in small amounts. “Digital yuan will provide traceability in large-quantity transactions by adopting an anonymous design in small quantities, " Changhun said. In short, one of the most important payment methods available will be the digital yuan, which works on the principle of user privacy.”

The US criticises the user privacy mechanism as one of the biggest problems of CBDCs. In the European Central Bank's digital euro public consultation , user privacy stands out as the most requested feature in Europe.

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