Well, in a sense something like Bitcoin provides anonymity in that nobody controls it, so I can send some to you with no names attached to the transaction. But, all transactions are recorded on a public ledger, the blockchain, forever, and that record is viewable by anybody. So what governments are doing now is requiring exchanges, places that sell bitcoin, to get "KYC" (know your customer) information before allowing you to buy crypto. This is all about tax. If they know I bought crypto, they can track it and know when I spent or sold it, and charge me any capital gains. That's all they really care about.

So on the one hand it can provide anonymity, but it's not nearly as anonymous as cash can be. These idiots that go on to talk shows talking about how crypto is used for crime are just that, idiots. Cash is the currency of choice for criminals and always will be.

But with China developing its own crypto, they can completely control everything, and allow absolutely zero anonymity. This will provide them with more information than they could dream of in a pre-crypto world. If they could get everyone using their state crypto, they would quite literally know everything thing about everyone's spending habits, including place, time, quantity, everything.