The ABC has approached the PBOC for comment.“The People’s Bank of China wants to make sure that a digital version of the yuan is relevant, in terms of making sure that central bank money remains tractable at the retail level.
University of Sydney senior lecturer Tang Qiang said that, if the algorithms were open and transparent, experts could verify and check their security and that would also give people more confidence. The central bank has not made public technical details about the development of e-CNY, and experts argue it could strengthen the system if they released that information. However, that information can be accessed if "competent authorities have corresponding legal documents in strict accordance with the procedures", according to China's Ministry of Industry and Information Technology.Įxperts have warned that the Chinese Communist Party could use the system as a weapon to further oppress people and control "disfavoured people". "So that is a frightening scenario in my opinion."Īccording to China's central bank, citizens can create e-CNY accounts using their mobile number and increase their balance and daily payment limits if they provide more personal information, such as their ID and bank account details.Ĭhinese laws prohibit telecommunication operators and internet service providers from gathering and using the personal data of e-CNY account holders. "The CBDC gives the central bank, or the central government of a country, close to absolute control over an individual's financial activities," Dr Lim said. UNSW senior lecturer Eric Lim said he was concerned that digital currencies such as e-CNY could make a person's financial history completely transparent to the central bank and to the government.Ĭhangshu is paying its public servants in digital currency. Mobile payment technology is already popular in China, with more than 900 million people using smartphones for their daily spending, according to the Payment and Clearing Association of China's 2022 annual report. "Maybe they will encourage you to buy a car, or let you know about good deals." Currency could give the government 'absolute control' Then they are capable of feeding you advertisements on a regular basis," he said. "Let's say the central bank sees you have 100,000 e-CNY saved in your wallet for a while. "So that The People's Bank of China will regain control of the currency's issuance and application," he said.ĭr Shi added that e-CNY could also be used as "a tool to precisely implement national economic policies" and influence consumer spending. People can pay with the digital yuan at participating restaurants and retail stores, and for some entertainment and ride-sharing services.Įxperts warn the e-CNY could give the central bank significant control over people's financial activities.
#Some alipay wechat pay ecny 150m trial#
The Chinese Academy of Social Sciences said Changshu - which was also involved in the trial - had "successfully implemented e-CNY for payroll, which is an important milestone in the practical application of the currency". It has now expanded to 26 cities across 17 provinces. "Big Brother is not only watching you, but also your wallet," one Weibo user wrote.Īuthorities started piloting e-CNY in 2019 across multiple cities, including Shanghai, Shenzhen and Xi'an. However, since the digital yuan is issued by China's central bank - and not a decentralised cryptocurrency exchange like Bitcoin - there have been concerns about privacy and the power it gives authorities to control people's finances. Public servants and workers at state-owned enterprises in Changshu, Jiangsu province, will be able to pay for goods and services using the digital yuan, also known as e-CNY via their phones, much like the smartphone payment system.
0 kommentar(er)
