The head of the Government Communications Headquarters (GCHQ), one of the three major intelligence agencies in the UK, expressed concern about China and its digital renminbi. Sir Jeremy Fleming stated that the existing Chinese CBDC can be used to collect information from users, assuming that global transactions can be controlled and filtered.

The UK is worried about the progress of China’s CBDC

The head of the Government Communications Headquarters (GCHQ), one of the UK’s largest intelligence agencies, warned that the use of digital renminbi could have a negative impact on global transactions.Sir Jeremy Fleming statement If the currency expands to other countries and other participants use it like locals, it may have an adverse effect on the health of the financial system. Fleming said:

If implemented improperly, it will give a hostile country the ability to monitor transactions. It empowers them. .. Able to control the operation of these digital currencies.

GCHQ is responsible for protecting British information and coordinating the country’s cyber defense in the event of an attack.

China goes forward

Fleming further explained that China is promoting its digital renminbi Wallet is one of the payment options for the next Beijing Winter Olympics, whether it is a local or a foreigner. This may prompt foreigners to install and use RMB digital wallets to pay for goods and services during the event.

Fleming’s concerns are the result of China’s development and progress in the digital currency field in recent years. Although some countries have written articles about the introduction of central bank digital currencies, and others have done so, no country is as advanced as China. Fleming emphasized:

China stole the march. ..[it’s]A lot of investment, open and secret, because it started to have a real impact on the way the rules of the road operate in the technological and digital environment. We must figure out what our response to all of this is.

There is still a lack of a framework for managing such currencies on a global scale, and Beijing has shown no intention of cooperating with other countries. However, Fleming talked about the importance of open trade and cooperation between the two countries.

What do you think of Fleming’s concerns about the digital renminbi? Tell us in the comments section below.

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