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“Digital yuan’s anonymity is misunderstood, says China’s digital currency leader

Summary:
I quite like the idea of a digital currency because it will make it much harder for organised crime to operate, but I would still like anonymity for daily transactions. China said it intends to keep cash, but they are also saying here that for small transactions people will have more animosity with the new digital Yuan than they do with regular digital payments. The new digital currencies do not need extensive mining either so they don't more energy that regular digital transactions. Mu Changchun, the Director General of China’s central bank Digital Currency Research Institute, clarified how the managed anonymity of China’s digital yuan works How it worksDigital yuan wallets have multiple tiers, and each tier is authorized to transact larger total values. The aim is to support anonymous

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 I quite like the idea of a digital currency because it will make it much harder for organised crime to operate, but I would still like anonymity for daily transactions. China said it intends to keep cash, but they are also saying here that for small transactions people will have more animosity with the new digital Yuan than they do with regular digital payments. The new digital currencies do not need extensive mining either so they don't more energy that regular digital transactions. 


Mu Changchun, the Director General of China’s central bank Digital Currency Research Institute, clarified how the managed anonymity of China’s digital yuan works 


How it works


Digital yuan wallets have multiple tiers, and each tier is authorized to transact larger total values. The aim is to support anonymous small value payments but traceable larger amounts. 


Apart from the small value fourth tier, users have to provide conventional proof of identity to open a wallet. The small value tier requires only a phone number as an identity. In contrast, other digital payments, such as via payment providers like Alipay or WeChat Pay, require conventional identification at onboarding.


"Digital yuan's anonymity is misunderstood, says China's digital currency leader


New York Times tweet


The Biden administration warned that digital currencies posed a threat to America’s sanctions program and said in a new report that the U.S. needed to modernize how sanctions were deployed so that they remained an effective national security tool.

 https://t.co/yuTh0o4Bat

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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