China’s Digital Currency Gambit Intensifies Privacy Fears Amid Challenge to US Dollar

By Charles McDermid

China is racing to roll out a government-backed digital currency, aiming to compete with rising Fintech stars, expand the state’s mass surveillance — and potentially dethrone the U.S. dollar as the king of global currencies for the first time since World War II.

The launch of the electronic yuan — known officially as the Digital Currency Electronic Payment (DCEP) or more generally as a central bank digital currency (CBDC) — went into its second phase this month.

Global media cited the move as China’s goal to have the cyberpayment technology in place for the 2022 Winter Olympics in Beijing and Hebei province in northern China. 

In the shorter term, however, state banks promoted the e-yuan ahead of a national shopping festival Wednesday. 

By Charles McDermid

China is fast-tracking the country’s first law to protect privacy and personal data, a long-awaited move heralded by pro-Beijing media but questioned by experts for not restricting state surveillance and for forcing economies to pick a side in the escalating tech war with the U.S.

The National People’s Congress, China’s powerful legislative body, last week released for public review the first draft of the Personal Information Protection Law.

If approved in the coming weeks, as expected, it would become China’s first unified national law on the protection of personal information.

No similar legislation exists in the United States.

Privacy Experts Alarmed at Oracle’s Role in Proposed TikTok Deal

By Charles McDermid

The impact of the White House’s decision to ban TikTok and WeChat that began Sunday remained unclear, but global privacy experts were alarmed that Oracle Corp. could still become the “trusted technology partner” of the Chinese owner of the two widely popular apps.

They told Digital Privacy News that the possible deal marked the start of a global era of data localization, as nations scrambled to keep citizens’ personal data within their own borders. 

“It’s easier for a government to request data stored on its territory, provided that its laws authorize it,” said Emmanuel Pernot-Leplay, a researcher in data-protection law at Tilburg University in the Netherlands. “It’s much more difficult when it has to make a request for such data when they are stored abroad.