Reacting to public concerns about China controlling people’s information when the digital yuan is launched, an official says that users will have full anonymity in their transactions.
“We know the demand from the general public is to keep anonymity by using paper money and we will give those people who demand it anonymity in their transactions,” said Mu Changchun, head of the digital currency research institute at the People’s Bank of China (PBoC), at a conference in Singapore on Tuesday, as reported by Reuters.
The official has regularly been giving updates on the digital currency, since his appointment in September. Earlier this week, Mu said that China’s digital yuan holders will not receive interest payments, and therefore, the digital currency will have no implications for inflation or monetary policy.
It is not clear when China will launch its digital currency, although it is “almost ready” after five years of research and development. Mu said at Tuesday’s conference that the goal of the digital currency is to create a new system in case of issues with China’s existing financial infrastructure, where two players – WeChat and Alipay – dominate electronic payments.
The official recently also said that the design of digital yuan would be similar to Facebook-led Libra stablecoin and that it could also be used across WeChat and Alipay payment platforms.