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UK Intelligence Chief Concerned of the Digital Renminbi of China

Chief of the Government Communications Headquarters, one of three major intelligence agencies in the U.K. has expressed concern about the digital renminbi of China. Sir Jeremy Fleming said that the Chinese CBDC, which is already in existence, could be used to gather information from users and, theoretically, to filter and control global transactions.

UK Concerned About Chinese CBDC Advancements

Chief of the Government Communications Headquarters, one of the largest intelligence agencies in the U.K. has warned about possible negative effects on global transactions due to the adoption digital renminbi. Sir Jeremy Fleming said that if the currency was extended to other countries and other players used it as locals, it could have a negative effect on the financial system’s health. Fleming stated that:

It can be misused to give a hostile state the power to monitor transactions. They have the power . . To be able control over the transactions made on these digital currencies.

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

China is Moving Forward

Fleming explained further that China promotes its digital renminbi currency wallet as one payment option for the Beijing Winter Olympic Games. This is true for both natives and non-natives. Foreigners might be tempted to use the digital wallet to pay for goods or services at the event.

China’s recent advances in digital currency have led to the concerns about Fleming shares. Although some countries have written essays about the launch of a central bank digital money, and others have done so, China is the only country that has launched a pilot. Fleming stressed:

China has taken a lead . . It is investing heavily, both overtly as well as covertly. This is because it has begun to have a real impact on how the rules of road will operate in a digital and technological context. We need to figure out how to respond to all that.

Beijing has not indicated any intention to collaborate with other countries on this issue. Fleming, however, emphasized the importance of collaboration and open trade between the two countries.