China’s proposed new stablecoin venture should find a balance between ensuring privacy and administrative requirement, China’s Digital Currency Research Institute stated on November 12.
The Digital Currency Research Institute is under the payments division of the People’s Bank of China (PBOC).
Talking at an event in Singapore, Changchun Mu stated the national bank won’t look for full control of clients’ personal details while complying with regulators’ requirements for data, as indicated by 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 stated at the meeting.
“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 stated.
China’s cryptocurrency gains divided opinion in the cryptocurrency and blockchain community. While a few spectators see helpful approval on the world’s most crowded country receiving a bitcoin-adjacent currency framework, others stress over authoritarian control and surveillance. The central bank has said it will ensure cash-like degrees of privacy but acknowledges it will keep the capacity to find crypto clients in case it suspects criminal behavior, similar to 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 stated.