“China’s digital RMB Yuan is a methodic tool for domestic surveillance and perhaps suppressive control“– Paul Ebeling
1000 yrs ago, when money meant gold, silver and copper coins, China invented paper currency. And now the Chinese government is minting money digitally, in a re-imagination of money that could shake a pillar of American power.
There are a list of concerns about China’s new digital RMB Yuan, Chinese consumers understandably have privacy issues, and China isn’t doing too much to allay those worries, according a report in the South China Morning Post:
“China’s central bank is trying to allay privacy worries associated with its digital currency by promising ‘controllable anonymity’… Mobile users fear having to share too much information and private businesses have low trust in the anonymity of payments.”
Privacy concerns aside, the PBoC is committing itself to “controllable” anonymity does not sound like much of a solution. In fact, China may want to maintain a measure of control over consumers’ data.
Not a surprise.
The new RMB Yuan is centralized, so the PBoC can maintain control. Though, t is not decentralized like Bitcoin. That means every transaction is not just recorded and reported, but recorded and reported to a just 1 government office.
A report noted that, “Some business owners were reluctant to participate in latest pilot programme, but were told, ‘A merchant can decline payment in Alipay or WeChat Pay, but cannot decline payment in e-Yuan“
A shop owner who refused to join in was told, “that the digital yuan scheme was a government project and that he had better participate.”
China’s e-Yuan aims to topple global USD’s dominance, that is part of the reason China is entering the digital currency space is to combat US trade sanctions. We believe that the process would take many yrs.
Have a healthy weekend, Keep the Faith!