UK intelligence raised concerns over digital yuan

Jeremy Fleming, head of the Government Communications Center (GCHQ), one of the UK’s intelligence agencies, warned of the possible negative impact of the global spread of Chinese CBDC for other countries, writes Financial Times…

GCHQ is responsible for conducting electronic reconnaissance and providing information protection for the government and the army.

According to Fleming, the already existing Chinese CBDC can be used to collect information about users and, hypothetically, to control and filter transactions. This will have a negative impact on the “health of the financial system”, believes the head of the special service.

He recalled that China is promoting a digital yuan wallet for use at the 2022 Beijing Winter Olympics. This means that in addition to local residents, foreign athletes and tourists can also install the application in order to pay for goods and services during the event.

Fleming drew attention to the rapid progress of the PRC in the launch of the CBDC. According to him, no country has implemented such an advanced pilot in this area.

“China has gained an advantage by investing a lot – both openly and covertly. And this is why it is starting to have a real impact on how rules will operate in technological and digital contexts. We must work out our own answer to all this, ”said the head of GCHQ.

He emphasized the importance of international cooperation to develop a framework for managing digital currencies. However, Beijing has shown no such intentions, Fleming said.

Jeremy Fleming, head of the Government Communications Center (GCHQ), one of the UK’s intelligence agencies, warned of the possible negative impact of the global spread of Chinese CBDC for other countries, writes Financial Times…

GCHQ is responsible for conducting electronic reconnaissance and providing information protection for the government and the army.

According to Fleming, the already existing Chinese CBDC can be used to collect information about users and, hypothetically, to control and filter transactions. This will have a negative impact on the “health of the financial system”, believes the head of the special service.

He recalled that China is promoting a digital yuan wallet for use at the 2022 Beijing Winter Olympics. This means that in addition to local residents, foreign athletes and tourists can also install the application in order to pay for goods and services during the event.

Fleming drew attention to the rapid progress of the PRC in the launch of the CBDC. According to him, no country has implemented such an advanced pilot in this area.

“China has gained an advantage by investing a lot – both openly and covertly. And this is why it is starting to have a real impact on how rules will operate in technological and digital contexts. We must work out our own answer to all this, ”said the head of GCHQ.

He emphasized the importance of international cooperation to develop a framework for managing digital currencies. However, Beijing has shown no such intentions, Fleming said.