Chinese CBDCs is more secure than normal payment apps, says Chinese central bank governor

The governor of the People Bank of China claimed that the Central Bank Digital Currency (CBDCs) based digital Yuan is more secure and private than other payment systems.

On the occasion of the 30th Anniversary Conference of the Bank of Finland Institute for Emerging Economies, Gang Yi – Governor at People Bank of china- shared about the development work on the Central Bank Digital Currency (CBDCs), known as e-CNY or digital Yuan. 

In the very starting, the Governor took reference to the privacy issues of the Digital Yuan and said that “Digital Yuan” is highly secured in terms of privacy over the other payment apps. 

“We are taking a high degree of focus on issues surrounding the security of personal information and the digital yuan and have made relevant regulatory and technological adjustments to meet this objective”

Further, Gang said that they are working with the same concept of blockchain-based technology to give privacy to the users. But they will regulate the high amount of transactions because that is the need of the lawful framework. 

“We have adopted a principle of anonymity for small transactions regarding the digital yuan and will only step in to regulate under the law for large transactions”

On the matter of the data collection of the “Digital Yuan ” users, Gang said that they are only collecting minimum information of the users that is required legally and that is less requirement over the other payment apps. 

Further, Gang asserted that the rules of the PBoC with the Digital Yuan system are restricting the use of the stored information of the users. But they can be used when legally required. And also the Chinese government passed many rules on the private data of the users to protect the privacy of the users. 

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