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
Payment Facilitator
An intermediary that verifies and settles digital asset transactions in the x402 protocol.
Mining and Miner
Mining is the process of validating transactions and adding new blocks to a blockchain by solving computational puzzles, and a miner is who performs this task to earn rewards.
Node and Client
Client are a software that enable participation in the Bitcoin network, where a node validates and relays blockchain data.
Liquidation
The process in DeFi where assets from an under-collateralized loan are sold to repay the borrowed amount, typically triggered automatically by smart contracts when collateral value falls below a required threshold.
Liquidity Pool (DEX)
A liquidity pool is a smart contract on a decentralized exchange (DEX) that holds a pair of tokens, enabling automated trading and liquidity provision without traditional order books.
Multi-Hop Swap
A DEX trade that routes through multiple liquidity pools or token pairs to achieve the desired swap, optimizing price and reducing slippage.