Managed Anonymity
A privacy framework in CBDCs balancing user anonymity with regulatory traceability.
What is Managed Anonymity?
Managed anonymity in e-CNY allows small-value transactions (under RMB 2,000) to be anonymous while enabling authorities to trace high-value ones for AML/CFT. It uses tiered wallets where basic ones require only phone numbers, protecting privacy under China’s Personal Information Protection Law.
In digital currencies, this optimizes social welfare by reducing tax evasion, with models showing 10-15% efficiency gains. Similar to EU’s digital euro, it employs anonymization tech without full central visibility.
Related Terms
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A central bank-issued digital currency designed to function as legal tender.
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The first and most valuable decentralized digital currency, created by Satoshi Nakamoto in 2009.