{"id":68343,"date":"2022-11-02T09:01:10","date_gmt":"2022-11-02T09:01:10","guid":{"rendered":"https:\/\/www.cryptocabaret.com\/?p=68343"},"modified":"2022-11-02T09:01:10","modified_gmt":"2022-11-02T09:01:10","slug":"chinese-central-bank-governor-user-privacy-and-financial-security-key-principles-guiding-cbdc-design-process","status":"publish","type":"post","link":"https:\/\/www.cryptocabaret.com\/?p=68343","title":{"rendered":"Chinese Central Bank Governor: User Privacy and Financial Security Key Principles Guiding CBDC Design Process"},"content":{"rendered":"

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According to Yi Gang, governor of China\u2019s central bank, the process of designing the country\u2019s digital currency is premised on two principles, the protection of user privacy as well as ensuring \u201cfinancial security.\u201d To achieve this, the central bank\u2019s role will be limited to managing the digital currency\u2019s \u201coperating system\u201d while the handling of personal transaction information is done by \u201cdesignated operating institutions.\u201d<\/strong><\/p>\n

Adhering to Relevant Consumer Protection Laws<\/h2>\n

People\u2019s Bank of China (PBOC) governor Yi Gang has said the process of designing China\u2019s central bank digital currency (CBDC), the digital yuan (also known as e-CNY), is guided by two principles: maintaining financial security and the protection of users\u2019 privacy. To ensure the principles are adhered to, Gang claimed his institution\u2019s role will be limited to managing the e-CNY operating system as well as handling cross-border transactions.<\/p>\n

Also, in his Oct.31 remarks<\/a> to Hong Kong Fintech Week 2022 participants, Gang insisted the PBOC \u201cdoes not handle personal transaction information.\u201d This task as well as the provision of e-CNY exchange services and circulation of the digital currency is handled by the so-called \u201cdesignated operating institutions.\u201d<\/p>\n

Meanwhile, the PBOC governor appeared to use his speech, which was delivered in his native language, to reiterate the bank\u2019s commitment to the law. He said:<\/p>\n

\u201cThe People\u2019s Bank of China strictly follows relevant laws and regulations on consumer privacy protection and ensures the security of personal information through advanced technical means and strict management mechanisms. Transaction data is encrypted and stored. [The bank anonymizes] personal sensitive information, which is not visible to third parties. Without the full authorization of the law, no unit or individual may inquire about or use the relevant information.\u201d<\/p>\n<\/p>\n

Narrowing the Financial Exclusion Gap<\/h2>\n

According to Gang, e-CNY users will have access to 4 wallets with lower limits as well as \u201cquasi-account-type \u2018hard wallets\u2019 [to] support small-value anonymous transactions both online and offline.\u201d The governor also used his speech to reassure the Chinese public that the PBOC will still \u201cprovide physical RMB cash services to fully meet the needs of the public.\u201d<\/p>\n

Concerning the ongoing research and development of the digital yuan, the PBOC revealed that this is being done to gain knowledge about the domestic retail payment needs as well as to \u201cimprove the level of financial inclusion.\u201d The improving of \u201cthe efficiency of the central bank\u2019s currency issuance and payment system\u201d is another reason why the POBC is proceeding with the digital currency project, Gang added.<\/p>\n

In addition to its research, the Chinese central bank is working with the Hong Kong Monetary Authority and according to Gang, the PBOC is also open to working with other monetary authorities.<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below.<\/strong><\/em><\/p>\n

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According to Yi Gang, governor of China\u2019s central bank, the process of designing the country\u2019s digital currency is premised on two principles, the protection of user privacy as well as ensuring \u201cfinancial security.\u201d To achieve this, the central bank\u2019s role will be limited to managing the digital currency\u2019s \u201coperating system\u201d while the handling of personal […]<\/p>\n","protected":false},"author":2,"featured_media":68344,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[309],"tags":[],"class_list":["post-68343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/68343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68343"}],"version-history":[{"count":0,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/posts\/68343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=\/wp\/v2\/media\/68344"}],"wp:attachment":[{"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptocabaret.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}