Totally Anonymous National Digital Currency Isn't Feasible - China.

Totally Anonymous National Digital Currency Isn't Feasible - China.

2021-03-25 | Robin Williams

Totally Anonymous National Digital Currency Isn't Feasible - China.

China’s central bank along with the United States Federal Reserve agree that a totally anonymous national digital currency isn't feasible. But Fed Chair Jerome Powell believes when a digital dollar is developed it must provide users with more privacy than the PBOC planned digital yuan.
“The lack of privacy within the Chinese system is simply not something we could do here,” Powell said while testifying before the House Committee on Financial Services earlier on Tuesday. “We’re only starting to think twice about this stuff and it’s getting to be a careful, detailed, and doubtless lengthy process of consideration.”
Powell’s comments came after Changchun Mu, the head of PBOC’s digital currency arm was quoted as claiming the digital yuan will offer greater privacy protection than the other digital payment system. The Chinese official outlined that the digital yuan will have “controllable anonymity,” within which the foremost private account would only require a telephone number. However, people got to register with a phone carrier with their ID to possess phone number. Users would even have to disclose more personal information if their deposit amount hits a particular threshold. The Fed has not specified what proportion anonymity any digital dollar would allow users to possesspartially as there's no concrete timetable for a digital dollar. While there'll be detailed research on the proposed stablecoin beginning as early as July, Fed officials have yet to disclose whether the central bank would host customer accounts or enlist a trusted third party, and what privacy protections users would have just in case of a breach. Powell explained that he agreed with Rep. Bill Foster (D-Ill.), who added within the hearing an anonymous, untraceable digital dollar “is not a viable option for our country or free world” due to the potential for money laundering or funding terrorism. Powell and Treasury Secretary Janet Yellen, who also testified prior to the committee, have voiced their concerns in recent months about how crypto assets might be used for such illegal transactions due to their anonymous nature.

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