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Photo: Shutterstock.com / Nattakorn_Maneerat

How China Is Closing In on Its Own Digital Currency

– Bloomberg

  • Viewpoint
  • Posted by Good ID team (Good ID)
  • 2 February 2021

How the People’s Bank of China’s digital currency could be used next year, giving the government more information about users’ spending

The digital currency will be the first in the world, but unlike cryptocurrencies such as Bitcoin, its value will be tied to the physical yuan and therefore won’t be volatile. Adopting its own centralized digital currency will give China control over its currency, in contrast to decentralized cryptocurrencies.

“Having the ability to track money electronically as it changes hands would be useful in combating money laundering and other illegal activities.”

This centralized control means that users' privacy might be put at risk, as the wallets won’t allow for anonymity, which Bitcoin does.

The PBOC has said that user information won’t be completely exposed to banks. But user identities will likely be tied to individual wallets, giving authorities another window into people’s lives

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