PBoC, the People's Bank of China has stated that its digital currency can now be considered ready. According to Mu Changchun, deputy director of the bank, a prototype that adopts blockchain architecture has developed successfully after five years of research.
His announcement, made at the China Finance 40 forum, was reported by local Shanghai Securities news on August 10.
Two-level operating system. According to the director, it would be difficult to issue a digital currency using pure blockchain architecture in a country as large as China, as retailers demand high competitive performance.
The digital currency will also adopt a two-level operating system to address “the complex economy of the country with a large territory and a large population”, with the PBoC at a higher level and commercial banks at a secondary level. According to Mu, this will improve accessibility, increase adoption rates among the public and foster innovation among commercial entities.
PBoC executive also mentions that the digital currency is designed to adapt to “high-frequency commercial scenarios for small-scale retail sales.” As reported by Cointelegraph on August 9, the PBoC planned to outperform the US libraries. UU. And facebook by publishing a national cryptocurrency, while US politicians would curb the stability of the social network for regulatory reasons. However, despite Mu's optimistic comments, it is difficult to know exactly when the Chinese digital currency will be launched.