In light of the ongoing testing phase of China’s digital yuan, a senior Chinese state bank official has stressed the need for new laws and regulations to address privacy concerns and write down how it works. Wang Jingu, vice president and chief risk officer of the Industrial and Commercial Bank of China, noted that the People’s Bank of China (PBoC) could track the issuance of a digital yuan transaction chain from circulation to circulation. Operating agencies, too, can track the chain at a certain level.
In a white paper in the China Financial Journal (via Bloomberg), Jinghu, a deputy of the National People’s Congress, called for drafting new laws and regulations around the digital yuan, also known as the digital renminbi or digital. RMB.
“Currently, the digital renminbi is not regulated by law or regulation, and the digital renminbi lacks legal guarantees regarding acquisition, use, risk prevention and control. With the expansion of the digital renminbi, it is important to provide strong protection through legislation, “said Jingu.
The new law should clearly define the central bank’s responsibility to protect users’ privacy and ensure that their information is accessible only for the sake of national security, Xingguo claimed.
The legal status, rights and obligations of the parties involved in the distribution of digital yuan, such as PBoCs, commercial banks, merchants and users – should also be clarified in the law, Jingyu believes, because it is “completely different” to issue banknotes and coins. “Explanation is required by the executive to ensure the stable operation of the digital renminbi.”
At a press event in January, Zou Lan, head of financial markets at the People’s Bank of China (PBoC), said the central bank’s digital yuan wallet was one of the fastest growing apps in China, based on the number of installs. Zou Lan also noted that about one-fifth of the population, by then, has already set up e-CNY wallets and the country has already seen transactions worth CNY 87.5 billion (approximately Rs 1,07,765 crore). Digital Fiat currency.
