People’s Bank of China Says Blockchain Based Digital Currency Is Ready
The People’s Bank of China (PBoC) has announced that its digital currency is ready for introduction. While revealing the information, PBoC deputy director MuChangchun, stated that a model based on blockchain architecture has been created successfully after research spanning over a period of five years.
The announcement was made at the China Finance 40 Forum and was reported by Shanghai Securities News. Mu stated that introducing a cryptocurrency utilizing pure blockchain architecture would be cumbersome to attain in a big nation such as China as retailers demand highly synchronized performance.
The digital currency will also use a two layer operating system to serve the country’s “complex economy with a vast territory and a large population,” with PBoC on a top level and commercial banks on a second level.
As per Mu, this will enhance accessibility, improve utilization rates among the common people and foster innovation among business entities.
As per PBoC executive, the digital currency is structured to be appropriate for “small-scale retail high-frequency business scenarios.” The PBoC intends to outstrip Facebook’s Libra by introducing a national cryptocurrency, as US lawmakers attempt to slowdown the social media platform provider’s stablecoin due to regulatory issues. Despite the optimistic statement by Mu, China has not announced a precise date of launch of digital currency.