Although China is yet to launch its state-backed cryptocurrency, the announcement itself has continued to excite the other countries eyeing to launch their own cryptocurrency. However, the People’s Bank of China (PBoC) recently remarked that the country’s upcoming crypto is “progressing smoothly”.
China’s Digital Currency Is Progressing Smoothly
It was earlier stated that the country’s decentralized domestic currency will go live in 2020 but the specific date of launch is yet to be revealed. While other countries are still scrutinizing the matter surrounding the digital currency and blockchain technology, China appears to be leading the space.
During an annual work conference in Beijing, PBoC addressed its own CBDC (Central Bank Digital Currency). It was also reported that the bank plans to conduct and oversee the research and development of ‘digital yuan’ throughout 2020.
“We will continue to steadily advance the development of legal digital currencies” in 2020, asserted the central bank.
More so, the forthcoming cryptocurrency will be available to commercial banks and will then be accessible to users and businesses, per the reports. Consequently, users and businesses with the help of commercial banks can register digital wallets of china’s much-anticipated digital yuan. According to the report, the PBOC is partnered with seven state-owned commercial banks and telecoms to test the upcoming cryptocurrency – the Industrial and Commercial Bank of China, China Construction Bank and the Agricultural Bank of China, China Mobile and China Unicom, China Telecom and Bank of China.
In addition, China’s increasing effort to launch digital currency is partly influenced by the hype of Libra, a proposed cryptocurrency announced by the Facebook social network. In fact, it was also stated that China’s upcoming cryptocurrency has the similarities of Facebook’s Libra. However, the currency will further be supported across major e-payments platforms such as Tencent’s WeChat and Alibaba-backed Alipay.