According to Mu Changchun, “User information can only be analyzed and monitored when transactions are suspected of violating laws concerning money laundering, terrorist financing or tax evasion.”
China's central bank, the People's Bank of China (PBOC), has issued reports that suggest the country's digital currency, the e-CNY, is having a good run. This makes the digital currency the world’s most widely adopted CBDC.
A crypto Twitter account, DroomDroom, said the Bank of China reported the development on its official WeChat page, stating that e-CNY transactions have crossed $14B mark.
According to DroomDroom,
“China’s central bank digital currency (CBDC) project has reached the mark of close to $14 billion, or 100.04 billion yuan, of made transactions during its pilot phase. It makes digital yuan, the e-CNY, the most widely adopted CBDC in the world.”
The nation is a pioneer in the creation of a sovereign CBDC known locally as the e-CNY. It began rolling out trials in 23 cities since late 2019 and officially released its payment app last month.
The digital currency is currently used by 4.6 million merchant stores, and over 261 million digital wallets have been created. Also, the number of transactions made in 15 provinces within the CBDC pilot framework had reached 360 million.
Despite the successes, concerns have been raised regarding the government's ability to monitor user information. A central digital ledger at the central bank does, in fact, oversee the system.
However, the head of PBOC and digital currency research institute, Mu Changchun, addressed some of the concerns in the September issue of Modern Bankers magazine.
He attempted to reassure the Chinese people that the system has "managed anonymity," meaning that outside parties are unable to see the transactions. All transactions are recorded by the central bank, and the system keeps small transactions anonymous. If users need to make larger payments, they must submit more information.
Mu said:
“User information can only be analyzed and monitored when transactions are suspected of violating laws concerning money laundering, terrorist financing or tax evasion.”
