China isn’t restraining itself from making the headlines. However, the latest report highlights the top-level design of China’s upcoming digital currency has been completed.
It was first reported by the country’s Central Bank “People Bank of China (PBoC)”, stating that the country has achieved one step in the development of China’s central bank-issued digital currency [CBDC]. It asserted that the “top-level design, standard formulation, functional research and development” of it’s yet to launch decentralized domestic currency has been completed.
More so, the head of the digital currency research institute at the PBoC, Mu Changchun notes that the new development paved the way to build “principles of stability, security, and control”. The news comes in a wake of an earlier report that noted: “China’s digital currency is progressing smoothly”.
China’s vigorous effort in building the country’s digital currency and exploring the blockchain ecosystem has raised the eyebrows of the other countries. However, especially for those countries which are planning to develop the Central Bank Digital Currency (CBDC). Although the launch date of China’s CBDC remains unknown, yet, Central bank in last week mentioned that they will ‘continue to steadily advance the development of legal digital currencies in 2020”.
Furthermore, China will reportedly roll the pilot testing of its CBDC to commercial banks. The process will then be shared among the individual users and banks, allowing them to register digital wallet using these commercial banks.
As the top-level design is reportedly complete, the next essential aspects that China is focusing on for the CBDC is conducting “solid research” to analyze “security barrier” and to improve cybersecurity. Noticeably, according to Sale Lilly who is a China policy analyst and professor of blockchain technologies at the Rand Corporation, the law is “highly complementary to many of the efforts and tasks required to roll out a CBDC”.
Lilly went on to add that;
“If China’s experience in trying to unify government cryptographic standards is anything like the U.S. Military’s experience, higher standards of encryption and trust scale users at a slower rate, so onboarding oracles and trusted agents for a private or permissioned access CBDC blockchain implies a natural trade-off between key security and speed of onboarding digital economy participants; banks, vendors, and a slew of Chinese government entities in tax and finance roles.”