China’s central bank governor says PBOC prioritizes protection of digital yuan privacy

People’s Bank of China (PBoC) Governor Yi Gang confirmed that discussions about the central bank’s digital currency (CBDC), known as e-CNY, are increasingly focused on the privacy aspects of its user operations.

Speaking at Hong Kong FinTech Week, he said privacy protection is at the top of the list.

A representative of the People’s Bank of China (PBoC), which has emerged as one of the central banks with a vested interest in digital central bank currencies, said e-CNY is largely focused on domestic retail transactions. The digital world.

He said the digital yuan came as an attempt to protect consumer privacy as a two-tier system was used.

Yi Gang acknowledged that the People’s Bank of China (PBoC) will facilitate inter-institutional transfers with banks in its Tier 1 jurisdiction.

At this stage, no information about the customer is collected.

In the 2nd stage, banks distribute the electronic yuan directly to customers but only receive information to be able to comply with the law.

The same spokesperson noted that no entity will be able to investigate a transaction without any strict legal authorization, giving most users the security they need to accept e-CNY.

A statement from the Governor of the Central Bank of China was as follows:

The People’s Bank of China (PBOC) ensures the security of personal information through advanced technology and strict management, in full compliance with customer privacy protection laws and regulations.
Transaction-related data is encrypted for storage and sensitive customer information is not disclosed to non-transacting parties.
Entities and individuals are prohibited from unauthorized investigation or use of information without strict legal authorization.

China is the world’s most advanced economy with cryptocurrency-based digital currencies (CBDC) being traded.

While digital legal tender has yet to be officially launched for everyone to use in the country, retail beta testing is robust, with a presence in major cities including Suzhou and Shenzhen.

Yi Gang said the People’s Bank of China (PBoC) has active cooperation with the Hong Kong Monetary Authority (HKMA) on inter-central bank relations, and the bank is interested in establishing other such relations with other central banks around the world.

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