The PBoC Is a Step Closer to Issuing Its Digital Currency
The WHO had recently recommended the use of digital currencies over bank notes after discovering that the COVID-19 virus could be transmitted though bank notes. This has caused many central banks to speed up the processes in issuing their digital currencies.
It was recently reported that research into China’s central bank digital currency (CBDC) is delayed amid the COVID-19 outbreak. However, the central bank has completed another milestone to issuing its official digital currency.
According to a local news report, the People’s Bank of China (PBoC), in partnership with private companies, has completed development of the digital currency’s basic function. An anonymous industry insider told the reporter that the PBoC is now drafting relevant laws to pave the way for its circulation.
Governments around the world are doing everything possible to ensure economic stability amid this COVID-19 pandemic. According to the insider, Central banks around the globe are cutting interest rates to zero or even entering negative territory, in order to release liquidity into the market. He believes it is time for China to accelerate the launch of its digital currency.
According to the report, Alipay, the financial arm of Alibaba had earlier this year publicized five patents related to China’s official digital currency. According to the insider, the patents concern the basic function of a digital currency, such as its issuance, circulation, payment, and anti-money laundering function. He added that, one could Judge from the patents, that the first step of technological development has been basically completed.
The insider further noted that, the next step will involve digital currency legislation and working with banking and insurance regulators on supervision. However, he said this step could be lengthier, making it difficult to come out with an exact launch date.
Featured image courtesy of Shutterstock. Source: Cryptopress.