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User Privacy and Financial Security Key Principles Guiding the CBDC Design Process – Bitcoin News in the spotlight

According to China’s central bank governor Yi Gang, the process of designing the country’s digital currency is based on two principles: protecting user privacy and ensuring “economic security.” To achieve this, the central bank’s role will be limited to managing the “operating system” of the digital currency, and the handling of personal transaction information will be done by a “designated operating authority.”

Compliance with relevant consumer protection laws

People’s Bank of China (PBOC) Governor Yi Gang said that the process of designing China’s central bank digital currency (CBDC), the digital yuan (also known as e-CNY), is a twofold process: maintaining and protecting financial security. I said it was principled. User Privacy. To ensure adherence to the principles, Mr Gang argued that his institution’s role would be limited to managing his e-CNY operating system and processing cross-border transactions.

Also, in a statement to Hong Kong Fintech Week 2022 attendees on Oct. 31, Gang claimed that the PBOC “does not handle personal transaction information.” This business, as well as the provision of electronic renminbi exchange services and the circulation of digital currency, will be handled by so-called “designated operating entities”.

Meanwhile, the PBOC governor appears to have used a speech delivered in his native language to reiterate the bank’s commitment to the law. He said:

“The People’s Bank of China strictly complies with relevant laws and regulations on consumer privacy protection, and ensures the security of personal information through advanced technical measures and strict control mechanisms. Transaction data is encrypted and stored. increase. [The bank anonymizes] Confidential personal information that is not visible to third parties. No department or individual may inquire about or use the relevant information without full authorization by law. “

Closing the financial exclusion gap

According to Gang, e-CNY users will have access to four wallets with lower limits, as well as a “quasi-account type ‘hard wallet’. [to] Supports anonymous transactions of small amounts both online and offline. The governor also used his speech to reassure the Chinese public that the PBOC will continue to “provide physical yuan cash services to fully meet the needs of the public.”

Regarding the ongoing research and development of the digital yuan, the PBOC clarified that this is being done to gain knowledge of domestic retail payment needs and to “improve the level of financial inclusion.” Improving “the efficiency of central bank money issuance and payment systems” is another reason POBC is pursuing a digital currency project, Gang added.

In addition to the investigation, the central bank is cooperating with the Hong Kong monetary authorities, and Gang said the PBOC is open to cooperating with other financial authorities as well.

What are your thoughts on this story? Let us know what you think in the comments section below.

Terrence Jimwala

Terence Zimwara is a Zimbabwean award-winning journalist, author and author. He has written extensively on the economic problems of several African countries and how digital currencies can provide an escape route for Africans.







image credit: Shutterstock, Pixabay, Wiki Commons, helloabc / Shutterstock.com

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User Privacy and Financial Security Key Principles Guiding the CBDC Design Process – Bitcoin News in the spotlight

Source link User Privacy and Financial Security Key Principles Guiding the CBDC Design Process – Bitcoin News in the spotlight

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