|
Limited anonymity is a key feature of the digital yuan, Mu
Changchun, director-general of the central bank's Digital
Currency Research Institute said, noting it ensures reasonable
anonymous transactions.
"On the other hand, it also prevents and combats illegal
activities including money laundering, terrorist financing and
tax evasion, maintaining the need for financial security," the
Securities Times quoted Mu as saying at a forum.
The People's Bank of China is a front-runner in developing and
issuing a central bank digital currency (CBDC), which in the
case of the e-CNY will be a traceable replacement for notes and
coins.
Other central banks are looking at developing CBDCs to modernise
their financial systems, ward off competition from
cryptocurrencies such as bitcoin and speed up domestic and
international payments.
China's efforts are among the most advanced globally, and the
country has been running various trials and pilot schemes of
different payment scenarios in recent years.
Mu also said the e-CNY, which is the digital version of fiat
currency issued by the PBOC, can be used to purchase anything
that can be bought with banknotes and coins.
"Banknotes and coins can buy gold and convert foreign currency,
so does the e-CNY," he said.
In May, some cities distributed free digital cash to revive
consumption and help businesses hit by pandemic curbs, with more
e-CNY applications expected in future to boost transparency and
effectiveness of government policies.
(Reporting by Winni Zhou and David Stanway; Editing by
Jacqueline Wong)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
