Tuesday, October 19, 2021

"Digital yuan's anonymity is misunderstood, says China's digital currency leader

 I quite like the idea of a digital currency because it will make it much harder for organised crime to operate, but I would still like anonymity for daily transactions. China said it intends to keep cash, but they are also saying here that for small transactions people will have more animosity with the new digital Yuan than they do with regular digital payments. The new digital currencies do not need extensive mining either so they don't more energy that regular digital transactions. 

Mu Changchun, the Director General of China’s central bank Digital Currency Research Institute, clarified how the managed anonymity of China’s digital yuan works 

How it works

Digital yuan wallets have multiple tiers, and each tier is authorized to transact larger total values. The aim is to support anonymous small value payments but traceable larger amounts. 

Apart from the small value fourth tier, users have to provide conventional proof of identity to open a wallet. The small value tier requires only a phone number as an identity. In contrast, other digital payments, such as via payment providers like Alipay or WeChat Pay, require conventional identification at onboarding.

"Digital yuan's anonymity is misunderstood, says China's digital currency leader

New York Times tweet

The Biden administration warned that digital currencies posed a threat to America’s sanctions program and said in a new report that the U.S. needed to modernize how sanctions were deployed so that they remained an effective national security tool.



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