Binance Research – No Bank Account Required To Transfer China’s Forthcoming CBDC

Binance Research, the research division of popular cryptocurrency exchange Binance has stated that there will not be a need for any bank account to use China’s Central Bank Digital Currency (CBDC).

The report published by Binance Research further stated that China’s CBDC can be transferred without using a bank due to its flexible structure.

Researchers have explained that a flexible design implies that components function independent of each other.

The remarkable feature of China’s CBDC is that it can be transferred without the need of a bank account. The objective of the design is to provide a certain level of anonymity, encourage the level of CBDC use such that it compares with the turnover of fiat currency and promote the circulation and globalization of the renminbi.

The report further states that the People’s Bank of China (PBoC) is contemplating using smart contracts in their framework, but is reluctant to execute any idea that extends past “basic monetary requirements” — a phrase that is yet to be explained.

The PBoC is worried that if they employ smart contracts that incorporate some amount of value to the CBDC, the product offered would turn into a security. Such a scenario could minimize the cryptocurrency’s usability and act as a drag on PBoC’s plan of globalizing the RMB.

The Global Times asserted that the PBoC had no intention to launch its CBDC in November. The PBoC has called the CBDC launch news as “inaccurate speculation.” Forbes, in the meanwhile, quoting unanimous sources, has stated that the technology behind the CBDC has been completed and that it could likely be introduced on November 11.