China’s proposed new stablecoin project should strike a balance between protecting privacy and regulatory enforcement, China’s Digital Currency Research Institute said Tuesday.
Within the People’s Bank of China (PBOC), the Digital Currency Research Institute is part of the central bank’s payments division.
Speaking at a conference in Singapore, Changchun Mu said the central bank will not seek full control of users’ personal details, while fulfilling authorities’ need for information, according to a report by Reuters.
“We know the demand from the general public is to keep anonymity by using paper money and coins … we will give those people who demand it anonymity in their transactions,” Mu said at the conference.
“But at the same time we will keep the balance between the ‘controllable anonymity’ and anti-money laundering, CTF (counter terrorist financing), and also tax issues, online gambling and any electronic criminal activities,” he said.
China’s digital currency has divided opinion in crypto and blockchain circles. While some observers see useful validation in the world’s most populous nation adopting a bitcoin-adjacent currency system, others worry about authoritarian surveillance and control. The central bank has said it will guarantee cash-like levels of privacy but admits it will retain the ability to track down crypto users if it suspects illegal activity, like money laundering.
“That is a balance we have to keep, and that is our goal. We are not seeking full control of the information of the general public,” Mu said.
Chinese yuan image via Shutterstock