The government of China has decided to impose a stringent ban on all types of cryptocurrency marketing, trading, and usage in the region. However, the country has decided to expedite the Digital Yuan adoption in the region. Digital Yuan is a CBDC or Central Bank Digital Currency project that is purported to increase the value of the Chinese paperback in the domestic and international market.
The country is among the leading regions in the world that are proceeding to introduce the digitized Chinese Yuan in several provinces. During the last few months, the mainstream adoption of the Digital Yuan has increased significantly. However, the country is also showing a resolution to address the most important concerns of its citizen surrounding data privacy.
Digital Yuan’s Security
Mu Changchun is the director general at the People’s Bank of China or PBoC. He issued an exclusive media statement to talk about the data protection plans of the Chinese government as head of the CBDC department. It is worth noting that Digital Yuan is facing strong criticism from the locals who are concerned about the lapse of their data and financial privacy.
However, Changchun ensured the masses that the Digital Yuan offers a considerable amount of privacy for its users. He was speaking to journalists from Security Times when he claimed that the government trackers are only in place to discourage practices like illegal trading, money laundering, tax evasion, and terror financing. He ensured the public that they could use the Digital Yuan for everyday use without worrying about intervention from government departments.
Digital Yuan as a Legal Tender
The Chinese government publically introduced the Digital Yuan during the last Winter Olympics, and since then, the CBDC has been introduced and adopted in several major cities of the country. Speaking on the matter of adoption, Changchun claimed that e-CNY or Digital Yuan would be used as a placeholder for paperback and coins in the country that the users can also use to purchase commodities like gold and will be able to exchange with foreign currencies.
Meanwhile, politicians in the United States are in the process of making preparations to ban the digital Yuan. Three Republican Party Senators have already signed a petition to delist the Digital Yuan application within the US jurisdiction.
The Senators claim that the Chinese Communist Party will spy on the people who use the Digital Yuan. Meanwhile, Chinese financial institutions are working in tandem with their government and introduced exclusive digital products made to compliment DY at the 5th Digital China Summit.