Quote from: Wind_FURY on Today at 09:24:18 AM

A central entity that can track, and control where “your” money can be spent, is not truly your money. Money has to be useful for Mr. Heroine Dealer to be truly good, hard money.

i understand windfurys preference of ignorance rather than research. but for others who have no clue like windfury..
lets run through how the chinese CBDC works from what has been said in media and news and announcements and reveals from china

the e-rmb(aka e-cny) works like this

there is no 'mining' or blockchain.
there is just a smart contract (translate into certain peoples language: altnet 'funding locks' and 'commitments')
im highly simplifying things to not confuse people

where by the PBC(public bank of china(treasury)) has a reserve that it splits out to 7 commercial services, where they have a 8 of 8 multisig reserve

and this is an example of the reserve
ECNY1q1111 (PBC) Y7,000,000 -> ECNY1q1234 Y1,000,000 (QQpay)
   ECNY1q1342 Y1,000,000 (Alipay)
   ECNY1q4231 Y1,000,000 (Tenpay)
   ECNY1q2341 Y1,000,000 (Wepay)
   ECNY1q3412 Y1,000,000 (HUAWEIpay)
   ECNY1q2413 Y1,000,000 (HainanBank)
   ECNY1q4321 Y1,000,000 (Xi'anBank)
knitpicker note: ignore the amounts(yield is not important) they are just demo easy numbers to show the splits
knitpicker note: ignore the public address designations i just made them up in a sequence for easy demo flow
knitpicker note: sequence for easy demo flow
ECNY1q?? = main 8 entities EG 11=PBC 13=alipay

all 8 entities have this and share signatures and sign and watch each other to agree on the splits of outputs and that it all totals correctly
when all 8 signatory's have signed. the new version is treated as the funding lock
if all have the same txid(sha of txdata) and all sign same txid. its then set as being locked and treated by all as the ruling funding lock

below that is the intermediary accounts (translation factory channels/masterhubs)
EG lets take Alipay

ECNY1q1351000 Y1,000,000 (Alipay) -> ECNY1q1251000 Y83,333 (QQpay)
   ECNY1q4251000 Y83,000 (Tenpay)
   ECNY1q2351000 Y83,000 (Wepay)
   ECNY1q3451000 Y83,000 (HUAWEIpay)
   ECNY1q2451000 Y83,000 (HainanBank)
   ECNY1q4451000 Y83,000 (Xi'anBank)
   ECNY1q1329999 Y350,000 (Alipay KYC Level 2 app)
   ECNY1q1319999 Y100,000 (Alipay KYC Level 1 app)
   ECNY1q1309999 Y50,000 (Alipay KYC Level 0 app)
knitpicker note: sequence for easy demo flow ECNY1q13? = alipay ?=kyc level of app EG 0=0

8 main entities(7 commercial services and PBC) see and sign this as alipays 'reserves'
the PBC only sees and accounts and signs for the funding locks down to this level (payment service holdings reserves).
note: the 3 KYC level app accounts are not customer level. they are service level apps of reserves for all customers reserves combined

now continuing with the alipay example
alipay offers 3 wallets services/apps. (KYC2,1,0 shown above) to customers
allipay self manages things happening below this level within the KYC2,1,0 accounts. (PBC doesnt see or sign for these)

KYC0 is where there is no ID required. but it has limits on maximum a user can send/receive without needing to upgrade to the next wallet
payment would fail if someone tried to send more than is allowed in the account(available channel liquidity)
KYC1 that does require some KYC. and KYC2 needs full KYC but at KYC0 there is no human name linked for alipay to get, save, store, record, report

imagine in this example that the KYC0 of Y50,000 was a 'funding commitment' for 10 customers with a $800 (Y5,000) limit
ECNY1q1309999 Y50,000 -> ECNY1q1309001 Y5000
   ECNY1q1309002 Y5000
.. and so on for 8 more outputs
knitpicker note: sequence for easy demo flow
ECNY1q1309 = alipay kyc level 0 and alipay ownership of channel 9 reserve

all 10 customers can see the reserve 'funding lock' of the alipayKYC0 and see their public address(identifier) is allotted 5000 but they do not know the human birth certificate names of each other in the KYC0 funding lock.. neither does alipay, nor PBC nor other commercial services
nor do they know how much of that reserve(liquidity) is spent or not spent of that allotment

because the actual account balance (translate channel commitment) the customer spends within is not the funding lock reserve
and not broadcast around

now
imagining customer ECNY1q1300002 already has a 2500:2500 split of the reserve with alipay
imagining customer ECNY1q1300001 already has a 3000:2000 split of the reserve with alipay

ECNY1q1309002 Y5000 -> ECNY1q1309999 Y2500 (alipay KYC LEVEL 0 wallet)
   ECNY1q1301002 Y2400 (customer X02)
   inflight in Y0
   inflight out Y100 (to ECNY1q1301001)

where recipient sees in their account
ECNY1q1309001 Y5000 -> ECNY1q1309999 Y1900 (alipay KYC LEVEL 0 wallet)
   ECNY1q1301001 Y3000 (customer X01)
   inflight in Y100 100 (from ECNY1q1301002)
   inflight out Y0
becomes
ECNY1q1309002 Y5000 -> ECNY1q1309999 Y2600 (alipay KYC LEVEL 0 wallet)
   ECNY1q1301002 Y2400 (customer X02)
   inflight in Y0
   inflight out Y0

where recipient sees in their account
ECNY1q1309001 Y5000 -> ECNY1q1309999 Y1900 (alipay KYC LEVEL 0 wallet)
   ECNY1q1301001 Y3100 (customer X01)
   inflight in Y0
   inflight out Y0
knitpicker note: sequence for easy demo flow
ECNY1q1309999 = alipay kyc level 0 and alipay ownership of channel 9 reserve
ECNY1q130100? = alipay kyc level 0 customer ?= 1 or 2

note: the recipient does not see the whole balance of the sender. all it sees is the inflight amount and the message containing whatever the sender wants to say as an explanation/payment reason EG "coffee from your girlfriend")

in KYC1 and KYC2 wallets (demo sequence ECNY1q1311001 ECNY1q1321001 respectively)
appears the same but with higher limits. whereby the they still use the 'sequence' ID. but separately alipay also has secure hidden database linking
ECNY1q1311001 = 'joe bloggs, home address'..
ECNY1q1321001 = 'joe bloggs, home address, tax id number, social security number, etc'..
other people dont get access to this separate birth name database, real life info. nor do the PRC at all.. nor do the PSB have access to this whole database*

its upto Alipay to do their own AML/CFT checks on the payments of its customers to look for suspicious activity. and report it to the authorities.
this is not to the PBC (public bank of china(translate fed reserve)) this is to the PSB(public security bureau(translate SEC/fintrac/police))

when a customer signs up for a KYC2,1 alipay takes the customers KYC checks it with PSB if they are a resident or have a work/tourist permit(visa) and a non-criminal. if it passes as no suspicious warning alipay allows them the higher limit use of the upgraded wallets.
at the registration part alipay does not tell the PSB the abstract wallet ID associated with the KYC. they just ask 'is joe blogs on any warning lists

*
later if a suspicious payment is made. then alipay report the abstract payment to the PSB with a explanation of suspicion and if requested for more information by PSB for the KYC of the user.. then alipay hands that to the PSB

but through all that. the PBC(public bank of china) is not aware of any names of customers
but through all that. the PBC is not watching every payment of customers
but through all that. the PBC is not demanding knowledge of suspicious activity of customers

but through all that. the PSB(public security bureau) is not aware of any names of customers accounts by default from the start
but through all that. the PSB is not watching every payment of customers
only in events of the PSB receiving a suspicious activity report of a abstract payment. will the PSB request KYC and can only ask that of the wallet payments of the KYC 2,1 level. where as the KYC0 level dont provide ID