I was not even expecting to see the Chinese Government issuing any new hardware for their citizens to hold their centralized currency.
Why is this needed for digital Yyuan? The Chinese government is thus trying to create the illusion for its citizens that they “own” digital yuan if they have a wallet.
To me it does not make sense for other reasons: if someone is a extremely good boy in China then it is logical that person would like to secure their Yuans using hardware, because hackers exist everywhere so do scams.
It’s not hackers and scammers that need to be feared in China, but the creators and regulators of the digital yuan. This CBDC has already tested such “curious” functions as a “timer for using” the digital yuan, for example. Will there be a digital yuan hardware wallet capable of protecting against the Chinese government?
But the digital Yuan does not use a decentralized Ledger, which means people in reality are not the sole holder of their private cryptographic keys, obviously the bank of China has a master key or a copy of all keys in existence, unlike actual decentralized coins.
This CBDC has nothing to do with decentralization and the "ultimate" holder of these digital coins is the bank of China and the government distributing and controlling it.
If a Chinese citizen loses their keys, would not be able to just request a new copy from the bank or go through a recovery process?
For some reason I thought that it would have to happen this way. I am absolutely sure that the recovery function will be “sewn into” the digital yuan, which will once again confirm the centralization of this entire new-fangled financial system.