The People’s Bank of China has confirmed its readiness …

The People’s Bank of China has confirmed its readiness …

People’s Bank of China confirms readiness to launch digital currency on blockchain

A senior official from the People’s Bank of China confirmed on Saturday that the state will soon have its own digital currency, writes The Block.

Mu Changchun, deputy director of the payment and settlement solutions division of the People’s Bank of China, said that a prototype of a central bank-issued digital currency (CBDC) already exists, and the digital money research group has completely worked out the blockchain architecture for it. China’s CBDC will not be based on blockchain alone, as this could prevent its proliferation in retail payments.

Changchun noted that the department has been conducting relevant research and development since 2014.

“We can say that the digital currency of the People’s Bank of China is already ready to launch,” he said, adding that the CBDC will use a two-tier operating structure. – The People’s Bank of China will be at the top level, and commercial banks will be on the second. The dual delivery system meets the conditions of our country. It can use existing resources to increase the enthusiasm of commercial banks and gradually introduce digital currency. “.

The People's Bank of China has confirmed its readiness ...

The two-tier system is preferred by China due to its complex economy, vast territory, and high population. “From the perspective of increasing accessibility and the public’s desire to use it, a two-tier structure should be adopted to address this problem,” Changchun said. He also praised the resources, including labor, and innovative capabilities of commercial enterprises that will express their willingness to cooperate with the regulator in the process of launching the digital currency..

Shaofu Jun, chairman of the national payment system of China UnionPay, noted in connection with the latest announcement that it will not be easy to ensure the fulfillment of the goals stated by the People’s Bank of China. Although CBDC can solve certain problems of cross-border payments, long delays, low efficiency of traditional systems, lack of certainty of the operational process and principles of regulation in foreign countries can have a negative impact on the implementation of the initiative..

The People's Bank of China has confirmed its readiness ...
The People's Bank of China has confirmed its readiness ...

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