Ex-Vice-Chairman PBoC – China Digital Yuan Backend Development Work is Complete
Wang Zhongmin, ex-vice-chairman of the PBoC’s (People’s Bank of China) National Council for Social Security Fund, has stated that China has finished the work on backend framework development of China’s central bank digital currency (CBDC).
Wang issued the statement while participating in the online 2020 Fintech Forum convened by Tencent Fintech Research Institute and the Fintech 50 Forum in Beijing.
As large number of cryptos already exist or in development, China intends to build a payment framework in which such currencies can exist side-by-side with sovereign virtual currencies.
Wang is of the opinion that such a platform will ensure better competition and partnership in the virtual currency domain.
As per Wang, the pandemic has intensified contest in the digital currency domain with several tech firms and governments showing enthusiasm in building a better digital payment framework.
He particularly underlined the creation of Libra, based on which Facebook is attempting to set up digital wallets on social media platform.
China’s CBDC is presently in the trial phase, Wang stated while speaking at the event. Notably, China has already begun creating several laws that will assist the roll out and adoption of digital currency.
Chinese tech and payment giant Tencent, Alibaba, China Merchants Bank and Huawei are presumed to be cooperating with the PBoC in creation and testing. While there is no official announcement regarding the date of roll out, Glenn Woo, Ledger Vault’s head of the Asia-Pacific region, stated that the digital yuan will probably become the initial state-backed digital currency to roll out across the world.