China’s State Digital Currency Must Have ‘Controllable Anonymity,’ Says Central Bank Official

 

China’s central bank is moving forward with plans to adopt a state-backed digital currency, but it will likely look very different from bitcoin and other public cryptocurrencies.

In an op-ed, which was published by regional media outlet Yicai, People’s Bank of China (PBoC) Vice-Governor Fan Yifei outlined the bank’s vision for its central bank digital currency (CBDC).

Fan made clear that the CBDC’s purpose is to replace physical currency (M0), and the central bank expects to exercise the same level of centralized control over digital currency as it does over cash.

He said that the CBDC, which may or may not be built using blockchain technology, is intended to save costs, increase efficiency and security, and — importantly — curb public demand for privately-created cryptocurrencies.

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