"At the moment, digital yuan pilot testing is progressing steadily." Mu Changchun, director of the People's Bank of China's Digital Currency Research Institute, stated at the economic summit.
The digital yuan is a form of legal tenderbitcoin mining app issued by the People's Bank of China that is equivalent to banknotes and coins.
"While more than 60 countries are experimenting with national digital currencies, China's digital currency e-payment program is the most advanced central bank digital currency program," said Myron Scholes, a Stanford University professor and Nobel laureate in economics who participated in the economic summit virtually.
"China is already a global leader in digital currency development, and your successful pilot and collaborative open model have amply demonstrated digital currency's limitless possibilities, particularly its positive impact on financial inclusion." PayPal's President and CEO, Daniel Schulman, stated as much.
Interpretation 2: Among current payment instruments, digital RMB provides the highest level of user privacy protection.
Concerning digital RMB, some people are concerned that central banks have access to user transactions and will violate their privacy, whereas others believe that the anonymity feature will lead to digital RMB becoming a criminalantminer a10pro tool.
So, what exactly is the truth?
"Among current payment instruments, the digital RMB has the highest level of user privacy protection." "Digital RMB is loosely coupled with bank accounts, which can technically realize small amounts of anonymity," Mu Changchun said.
Simultaneously, he stated that "On the one hand, controlled anonymity" is an important feature of the digital RMB to protect the public's reasonable anonymous transactions and personal information protection needs, while on the other hand, there is also the objective need to prevent and combat money laundering, terrorist financing, tax evasion, and other illegal and criminal acts to maintain financial security.
If the level of anonymity is too high, digital RMB may be targeted by criminals and used for illegal transactions such as pornography, gambling, and drugs. The digital RMB is designed to be 'anonymous for small amounts and traceable for large amounts,' in the hope of providing people with peace of mind and assisting them in recovering their money if a telecommunication fraud involving the digital RMB occurs." Mu Changchun agreed.
Interpretation 3: Central bank digital currency has the potential to become a worldwide phenomenon.
You may wonder, aside from not having to worry about dad and mom losing money due to telecom fraud, what other changes can digital currency bring to our lives.
According to Myron Scholes, the RMB digital currency will boost the RMB's international appeal and increase the efficiency of cross-border transactions. Simultaneously, financial and business innovation will accelerate as digital currencies make all financial transactions faster, and personalized solutions and more flexible implementations become possible.
"With the global epidemic crisis leading to bitcoin earnnew habits among consumers around the world who are giving up cash, and businesses responding, using digital currencies is no longer a question of timing, but of timing." According to Daniel Schulman, the development of digital currencies will eventually help people, families, and businesses all over the world improve their financial health.