[Weekly e-CNY] Digital Yuan Targeting 'Controllable Anonymity'

The digital yuan (e-CNY) is a digital legal currency (CBDC) issued by People's Bank of China(the Central Bank of China). This year, the Chinese government introduced digital yuan payments to China's largest payment services such as WeChat and Alipay.

Since CBDC competition affect the fate of furue digital financial supremacy, the digital yuan, which is being considered currently at the forefront, has became a primary concern for governments.

These are the main factors of The digital yuan.

△1. 'Controllable Anonymity'
The Chinese govenment says the digital yuan seeks a solution with the aim of 'controllable anonymity'. "To effectively implement controllable anonymity, we will gradually establish ▲Information isolation mechanisms ▲Clear legal conditions for digital wallet inquiry, freezing and deductions ▲Improvement of punishment mechanisms ▲Digital money laundering, prevention of terrorist financing, and other laws and regulations," said Mu Chang-chun((穆长春), Director, Digital Currency Research Institute, People's Bank of China.

△2. 'Extending Digital Yuan to aution businese'
The Chinese govenment launched a business to deposit auction deposits in digital yuan. The project is 'Online Judicial Auction Digital Yuan Fund Settlement Project' of Beijing Stock Exchange, and was jointly launched by China's Industrial and Commercial Bank and Beijing Registration Clearing Limited.

△3. 'The appearance of Social Security Card in China'
The Beijing Daily said China Post Savings Bank has released a social security card combined with a digital yuan hardware wallet in cooperation with several organizations. The social security card is an IC card issued by the Ministry of Personnel in China, and is a public service card for social security such as ▲ basic information such as name, ID number, and family register ▲ insurance tasks ▲ medical expenses payment ▲ business and job seeker registration. As of the end of June 2021, the number of social security card holders reached to1.343 billion, and the use of digital yuan is expected to spread further.

The Chinese government predict that the digital currency will move through furture financial trends. Therefore the Chinese government has been implementing policies that lead the digital financial market including the digital currency.

권승원 기자 ksw@