Skip to main content

China and Digital Currency : multifaceted advantages or a surveillance and tracking juncture?


People’s Bank of China (PBoC), China's central bank issued a public notice on April 29, 2020, “In order to implement the FinTech Development Plan (2019-2021), the People’s Bank of China has explored approaches to designing an inclusive, prudent and flexible trial-and-error mechanism. In December 2019, a pilot programme was launched in Beijing. To intensively advance the trial work of fintech innovation regulation, the PBoC supports the expansion of the pilot program to cover the cities of Shanghai, Chongqing, Shenzhen, Hangzhou, Suzhou, as well as Xiong’an New Area of Hebei, by guiding licensed financial institutions and tech companies to apply for an innovation test.”

After five years in making China's digital yuan is ready to be made public. While the world is battling Corona and settling the blame over China, the republic pushes out China’s central bank digital currency (CBDC), Christened Digital Currency Electronic Payment (DCEP) will be made available via mobile wallets. This new digital cash values the  same as yuan and if this experiment succeeds than China will be the first sovereign that uses crypto.

Cryptocurrency has been received skeptically by the whole world but the case is quite the opposite in China. After 2015-16, Chinese investors became intrigued by ether,and Bitcoin became a popular alternative asset.

"China has emerged as the capital of the crypto ecosystem, accounting for nearly 90% of trading volumes and hosting" The Hindu reports.

Outside China, people are dwelling if the digital yuan will takeover the dollar, as this stroke by the  People’s Republic will forever change the trading way.

Advantage or Surveillance? 

Beijing gives a mundane explanation for circulating digital yuan as a way to control shadow banking and other risks.
Digital Currency will pave multifaceted advantages like combating tax evasions and money laundering. Also, paper currency consumes around 2% of the GDP. It will also help in financial inclusions and direct benefit transfer especially in emergencies. Overall, the digital currency will speed up transactions and also ease international trade.

But, this crypto retail system would not be cryptic and the anonymity of cash will disappear. Authorities can very well look into transactions for illegal and unwanted activities. The rising state of surveillance has questioned citizen privacy as physical contact tracing and now financial tracing becomes the new normal.


source https://www.ehackingnews.com/2020/05/china-and-digital-currency-multifaceted.html
Labels:

Comments

Post a Comment

Popular posts from this blog

Provider Volia reported to the cyber police about the intense cyberattacks on the server

Cable provider Volia appealed to the Cyber Police on the fact of fixing a DDoS attack on the Kharkov servers of the company, which has been ongoing since May 31. "For three days, from May 31 to today, the Volia infrastructure in Kharkov is subjected to cyberattacks. At first, they were carried out only on subscriber subsystems, later they switched to telecommunications infrastructure. As a result, more than 100,000 subscribers experienced problems using the Internet, IPTV, multi-screen platform, and digital TV," said the company. In total, the complete lack of access to Volia's services, according to the provider, lasted 12 minutes on May 31, 45 minutes on June 1. There was also an attack on the website volia.com, but it was managed to neutralize. "DDoS attacks were massive and well-organized. The type of attack is UDP flood and channel capacity overflow with the traffic of more than 200 GB. UDP is a protocol used for online streaming services - streaming, te...
Post a Comment
Read more

Information security experts have warned Russians about bonus card fraud schemes.

Fraudsters several thousand times tried to illegally take advantage of discount bonuses of Russians in 2019. Some attackers gained access to customers' personal accounts, and then bought the products using bonuses, said Alexey Sizov, head of the anti-fraud department of the Application Security Systems Center at Jet Infosystems. According to him, a fraudster can register a personal account on a card that was issued to another person. The victim will accumulate points without knowing about the existence of his profile, and the attacker will write off bonuses, said Sizov. The expert added that this is mainly done by novice scammers. According to him, loyalty programs are poorly protected, unlike banking operations. He said that they are estimated at 50 billion rubles ($760 milliard) for the 30 largest retailers. Alexey Fedorov, Chairman of the Business Russia Trade Committee, said that in 2019, the number of bonus and discount thefts "increased significantly." ...
Post a Comment
Read more

Apple Plans to Expand Cloud-Based Services, Enters Cloud Computing Space

Apple is planning to invest more in streamlines and increasing its cloud-based and software services like iCloud, Newsplus, and Apple Music. The expansion will go along with devices like iPads, MacBooks, and iPhones. To be entirely sure about the reliability of the cloud-based service on all the Apple devices, the company has decided to rely on AWS (Amazon Web Services) and the cloud division. AWS, as you might know, is a subunit of Amazon that offers cloud-space solutions. According to CNBC's findings, Apple is said to pay Amazon $30 Million monthly for its cloud-based services. It also means that Apple is one of the biggest customers of AWS. Nevertheless, Apple hasn't confirmed whether it uses Amazon's cloud services besides its iCloud. According to experts, Apple also has some of its cloud services on Google. Amazon transformed the management of the data center and hosting of the applications when it brought the AWS. Being the first one to offer services like these,...
Post a Comment
Read more