China's digital central bank currency is "ready" after 5 years of development
Mu Changchun, deputy head of the payment and settlement department of People's Bank of China (PBOC), stated that CBDC prototype exists, and PBOCs The Digital Money Research Group has already fully utilized the currency blockchain architecture. China's CBDC will not rely entirely on pure blockchain architecture, as this will not allow the currency to achieve the throughput required for retail use.
According to Changchun, the currency has been in the research and development phase since 2014. At the meeting on Saturday, he said, "People's bank digital currency can now be said to be ready."
CBDC will employ a two-stage operating structure, per Changchun:
People's Bank of China is the top tier and commercial banks are the second tier. This dual delivery system is suitable for our national conditions. It can use existing resources to mobilize the enthusiasm of commercial banks and regularly improve the acceptance of digital currency.
A two-tier system is preferred because of China's complex economy, vast territory and large population. "From the perspective of improving accessibility and increasing the public's willingness to use, a two-pronged operational framework should be taken to address this difficulty," Changchun said. He also welcomed the resources, talents and innovation capabilities of commercial businesses that will partner with PBOC to roll out the currency. Finally, this system will help to avoid the concentration of risk and financial disintermediation.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "At the same meeting, China UnionPay chairman Shaofu Jun that the goals of China's CBDC would be difficult to achieve, while a CBDC could solve problems related to cross-border transactions, long lag times and inheritance inefficiencies, a lack of clear operational processes and a detailed regulatory framework over land will be challenging to overcome . "data-reactid =" 25 "> At the same meeting, China UnionPay Chairman Shaofu Jun said that the goals of China's CBDC would be difficult to achieve. While a CBDC can solve problems related to cross-border transactions, long backlogs and inheritance inefficiencies, the lack of clear operational processes and detailed land regulations will be challenging to overcome.
