Digital Yuan: Two-blade Knife

Enhance security and internationalization of yuan yuan through digital money issued by the central bank is one of China's goals ... 0:00 / 4: 04 nurses illustrated. Source: Internet

.Theo Digital Finance Director at Beijing University (China), to minimize financial risks, China needs to consider advantages and disadvantages of easing tightened capital control Te, by using the central bank's digital currency (CBDC). So far, digital yuan is mainly used in the domestic retail sector, but a big question is usually discussed Is it, whether it becomes a useful role in internationalization, in addition to helping efforts to liberalize China's market and allow the central bank to monitor capital flows, or not? On the other hand, Dong This growing currency enhances the monitoring capabilities of the authorities in China's cross-border payment system, allowing to monitor cash flow in real time effectively. From there, help management agencies discover faster economic risks and implement earlier efforts
In an online discussion about the newly organized CBDC, Mr. Huang Yiping, expert Macroeconomics and international finance said that there will be speculators and bad guys can also use high technology to do everything very quickly. "I tend to believe that technology is always a two-blade knife. The main concern is that if China is not in the right direction, it can lead to large financial risks even the financial crisis ". Works, China's financial services are mostly closed with Foreign investors and cross-border cash flows are limited by the control measures of Ha Khac capital, to prevent cash flow from flowing out in each crisis. But the strategic route is set this year, which is China's 14th 5-year plan, this may change. Especially, when the US enhances the ability to impose sanctions to finance With China, the important thing that the country is now ignored the US dollar, by strengthening the use of the yuan in finance, trade and global investment. Tissues also added: "The opening of China's capital market and internationalization of money will be important policy objectives to achieve. But still very slowly, because China must achieve the balance between the interests of open capital accounts with the risk of accompanying. "It is known, network security and money laundering are also the main features of Digital yuan, is gradually being implemented nationwide in the form of testing, involving millions of people and more than 2 billion yuan (314 million USD) so far
However, the Government, banks and e-commerce platforms need to improve customer data protection capacity. According to Henry Zheng, expert on Fintech and innovation in the company EY China, Through thousands of domestic banks and digital yuan, will help them enhance the ability to consider digital records of money transfer operations, which will help the central bank eliminate weaknesses in Use cash.zheng notes that the benefits of using digital yuan are clear to Chinese consumers, an exchange to sacrifice private data privacy for the benefit of the benefit of Network security and national security. In recent weeks, Beijing strengthens "repression" technology giants, with allegations of user data collected illegally. In it, Didi Chuxing, the largest national call service has been deleted from the app store this month for the reason "national security", just a few days after being IPO to be on the trading floor US stocks. Currently, China's mobile payment market is dominated by AliPay of Alibaba and Wechat Pay of Tencent, creating a giant online ecosystem that provides services and products based On their digital wallet. Later, 9 organizations are designated by the Chinese People's Bank (PBOC) to design their own wallet, separate data sets into trading information sections collected by each wallet. However, PBOC will have access to all data, because digital yuan will be used by all digital wallets of organization.Benedicte Nolens, head of the innovation center of the International Payment Bank (BIS) in Hong Kong said the ability of digital NDT traceability through a controlled anonymousness is very important for PBOC's money laundering prevention efforts , because of large, suspicious transactions, related to digital NDT can be traced to prevent and punish criminal acts. Diem Ngoc / Enternews.vn

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