China’s central bank is likely ready to launch its digital currency. This is happening the fact that the country is imposing ban on the use and trade of cryptoassets notwithstanding
China’s Central Bank Digital Currency
Deputy Chief in the Payment and Settlement Division of the People’s Bank of China (PBOC), Mu Changchun, made known on August 10 that the central bank will soon launch its digital currency. Changchun said this at the Finance 40 Group meeting while giving an update on the project that started since 2014.
According to Changchun:
“People’s Bank digital currency can now be said to be ready.”
Changchun said the People’s Bank of China has access to a prototypical version of the digital currency and that the PBOC has fully adopted and integrated the use of blockchain technology into its infrastructure.
He went further to say that it will be difficult to achieve a high level of performance for retail use in a country as big as China if the digital currency relied solely upon a blockchain tech.
Changchun also talked about how to distribute the digital currency in what he calls a “two-tier” operating system.
According to Changchun,
“The People’s Bank of China is the upper level and the commercial banks are the second level. This dual delivery system is suitable for our national conditions. It can use existing resources to mobilize the enthusiasm of commercial banks and smoothly improve the acceptance of digital currency.”