At the end of last year, China and Hong Kong began the second phase of testing the digital version of the yuan (CBDC). To increase the popularity of the token, the People's Bank of China wants to endow it with approximately the same functions that conventional cryptocurrencies have.
Transactions with the yuan will be confidential except in certain cases, said Mu Changchun, who is the head of the Institute of Digital Currencies at the Central Bank. He emphasized that the platform for transactions with CBDC will be just as decentralized, and regulators will not be able to control the sending and receiving of funds.
However, the Central Bank of the Celestial Empire will not provide complete privacy for holders of the digital yuan.
Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding
According to Changchun, if necessary, supervisory authorities will be able to use the platform's user activity monitoring service to identify suspicious transactions. In this way, the state will be able to fight money laundering and other dubious schemes.
The head of the research institute also noted that China should, in parallel with the creation of the token, accelerate work on the implementation of the regulatory framework for CBDC.