PBOC rules out fully anonymous CBDCs

Fully anonymous national digital currencies do not align with the consensus of the world’s leading central banks. Mu Changchun, director of the CBDC Institute at the People’s Bank of China (PBoC), said, The Block reports.

The anonymity conditions of national digital currencies are their constrained nature and the need to manage risks. Fully confidential CBDC is not constructive, he noted.

The official explained that the yuan’s core rests on what is referred to as “controlled anonymity.” It provides users with privacy in making transactions, but leaves transaction details transparent to regulators.

According to Mu Changchun, any project that conflicts with the goals of combating money laundering, financing of terrorism, and tax evasion will be vetoed.

A representative of the PBoC cited widespread use of Bitcoin and USDT by criminals to launder proceeds from illegal activities.

The publication noted that the PBoC for the first time confirmed the role of CBDC as a tool of financial supervision.

In October, ForkLog reported that in transaction data involving the digital yuan the merchant name does not appear.

Dovey Wan, a managing partner at Primitive Ventures, warned that with the CBDC launch, Chinese authorities would only need to change a couple of lines of code.

How China managed to become a leader in monetary innovation thanks to the digital yuan (DCEP)

A similar stance on the confidentiality of the digital ruble was voiced by the head of the Bank of Russia Elvira Nabiullina.

The Bank for International Settlements and seven leading central banks worldwide excluded full anonymity due to AML/CFT rules.

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