Central bank digital currencies (CBDCs) like the Chinese digital yuan project may well bring centralization of money to a whole new level, an article by a top Chinese central bank official reveals.
In the article, written by People’s Bank of China (PBoC) deputy governor Fan Yifei for the bank’s Financial News newspaper, it was made clear that the primary goal of the digital yuan project is to defend the state’s monopoly on money creation, the South China Morning Post reported today.
The deputy governor stressed that money creation is a sole responsibility for the central bank, and that the digital yuan will fall under the PBoC’s “centralized management.”
According to the report, the comments from the PBoC shows that the Chinese government “will maintain full control of data about issuance, circulation and transactions of the digital yuan.” The new system runs counter to what decentralized cryptocurrencies are and is potentially a deal-breaker for users concerned about financial privacy.
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