Chinese Authorities: We Will Ensure Confidentiality of Transactions with Digital Yuan

China and Hong Kong started the second phase of testing the digital version of the yuan at the end of last year.

In order to increase the popularity of the CBDC, the People’s Bank of China wants to endow it with the same functions as conventional cryptocurrencies.

According to Mu Changchun, head of the Institute of Digital Currencies at the Central Bank, transactions with the yuan will be confidential except in certain cases. He has said the platform for transactions with CBDC will be just as decentralized, and regulators will not be able to control the sending and receiving of funds.

However, the Central Bank will not provide complete privacy for holders of the digital yuan.

According to Changchun, if necessary, the supervisory authorities will be able to use the service to monitor the activity of users of the platform in order to identify suspicious transactions.