Chinese Digital Currency to Balance Anonymity and Crime Prevention
NEWS
November 12  |  2 min read

Chinese Central Bank Digital Currency to Balance Between Privacy and Need to Prevent Crimes

The COIN360 Editorial Team

On November 12, a Chinese central bank official shared that the government is “not seeking full control” over citizens financial transactions via its proposed digital currency, but aims to maintain the balance between demand for anonymity and need to prevent such crimes as money laundering, terrorism financing, tax evasion or online gambling, reported Reuters.

The People’s Bank of China is reportedly close to rolling out its digital currency, intending to be the first central bank to issue a digital currency. While the details are not yet available, a centralized blockchain could provide the Chinese government an unprecedented possibility to watch over its citizens money flows.

Head of the People’s Bank of China’s digital currency research institute Mu Changchun shared during a conference in Singapore, that the central bank is aware of citizens’ demand for anonymity and the proposed system will grant the opportunity to keep it.

According to Mu’s statement, other goals of the project, apart from maintaining the balance between citizens privacy and need to prevent crimes, include providing access to financial services in rural areas and preventing issues with general financial infrastructure of digital payments by adding competition to two players that dominate the market at the moment.

A full overview of recent developments in the blockchain industry in China is available in a recent COIN360 report.