The People's Bank of China (PBOC) has commended the data protection qualities of the digital yuan and its “reasonable” anonymity needs, after it was long feared to be a tool of mass control.
According to people close to the development of the project, China is looking to create its central bank digital currency (CBDC) in a way that ensures privacy.
PBOC digital currency research institute head Mu Changchun took the opportunity to explain the qualities of the CBDC further using the 2021 China Development Forum last Sunday.
Mu argued that making a central currency completely anonymous was not reasonable and that any digital currency would need to find a way to meet anti-money laundering and counter-terrorist financing and, not least, tax evasion.
He talked about “controllable anonymity” as the underpinning mechanism in the CBDC. Telecoms involved in the research and development of the currency are not allowed to disclose any personal data of any kind.
Third parties, such as e-commerce platforms would not be able to access the personal data of digital yuan holders either. The currency will come with the option to use a special feature known as “ID anonymization” and another personal data protection system.
Overall, the PBOC is committed to keep the anonymity of its residents on point when they deal with everyday platforms. However, the bank will have backdoor access to the CBDC and how it's being used by individuals.
This means that anyone who wishes to participate in online gaming via digital yuan will have to make sure that they do so at regulated and approved casinos. Some of the best casinos out there that accept Chinese players include 1xBit and BitStarz.