China's central bank, the People's Bank of China (PBoC), doubts a central bank digital currency (CBDC) should be fully anonymous.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
According to Mu Changchun, the head of the Chinese central bank's Digital Currency Research Institute, "controllable anonymity" as an important feature of China's CBDC protects the public’s needs for reasonable anonymous transactions and personal information protection, as well as prevents money laundering and terrorism financing.
"The precondition of CBDC's anonymity is it being risk-controllable and limited. A fully anonymous CBDC is not practical," Mu added.
The Digital Currency Research Institute's comment comes amid the PBoC's call for focus on supporting economic growth and reducing financial risks. The PBoC's Governor Yi Gang said earlier that the regulator should provide "positive incentives for economic entities and restrain the breeding and accumulation of financial risks."
As iHodl previously reported, the PBoC set up a joint venture with SWIFT to comply with Chinese regulatory requirements on the CBDC. SWIFT claims the collaboration will allow it to get all the necessary licenses for local network management activities to focus on maintaining compliance with applicable regulations in China.
If you are looking for a crypto trading platform to trade your assets, visit Gozo.pro, a safe and reliable exchange.