China’s Central Bank recently revealed that the country’s digital currency is ready. The announcement was made by the Deputy Director of the People’s Bank of China (PBoC) Mu Changchun during this year’s China Finance 40 Forum.
Five Years of Work
According to Mu, they had successfully developed a prototype that supports blockchain architecture. He added that it took researchers five years to come up with the digital currency.
The deputy director also explained that it would be difficult to issue this type of currency using unadulterated blockchain architecture. He said it was because retailers in a country as large as China needed a steep concurrency performance.
The designed currency will reportedly utilize two-level operating structure to manage China’s convoluted economy, expansive territory, and huge population. The PBoC will be considered as the upper level while commercial banks will be delegated as a second tier.
Improving Public’s Adoption Rate
Mu claimed this would enhance accessibility, improve the public’s adoption rate, and boost innovation with other commercial bodies. He also said that the purported national crypto was developed to be ideal for scenarios that involved small-scale retail with high-frequency business.
There have been reports that China’s Central Bank wanted to outdo the United States and accomplish what Facebook was trying to do by releasing a national cryptocurrency. But US regulators have inadvertently given China an edge as the social media platform’s Libra project is on hold due to regulatory concerns.
Despite the PBoC executive’s enthusiasm about the readiness of China’s digital currency, it remains to be seen when the country will launch its reported cryptocurrency.