Backend infrastructure for China’s digital currency now complete says Chinese official

The Chinese central bank is another step closer to the complete preparation of China’s digital currency. One of the officials of the Chinese bank mentioned that the backend of the planned CBDC has been completed. Already, the digital currency is being tested in about different provinces in the country.

Another step closer to China’s digital currency launch

Wang Zhong­min, a former senior official at the Central Bank of China, confirmed the development during an online forum. Most precisely, Zhong­min revealed this during the 2020 Fin­tech Fo­rum held in Beijing. The online section was reportedly organized by Ten­cent Fin­tech Re­search In­sti­tute. 

Moving forward, the Chinese bank official mentioned that the backend architecture for the development of China’s digital currency has been completed. As reported by Sina, a Chinese news outlet, Zhong­min said the infrastructure would enable a more convenient environment for digital currencies.

During the online forum, Zhong­min acknowledged the fact that there are so many digital currencies in development and circulation today. He specifically referenced the development of Facebook’s Libra cryptocurrency. He added that the coronavirus pandemic resulted in more competition in the crypto space.

China’s CBDC in the testing phase

To this extent, he admitted that the country sought to establish a payment infrastructure, wherein these cryptos and China’s digital currencies can co-exist. Having confirmed the completion, he believed that the payment infrastructure would allow healthier competition with the cryptocurrency space.

While the Chinese bank keeps advancing towards the launching of China’s digital currency, the official release date remains unknown. However, the digital currency is still in its trial phase at the moment, according to Zhong­min. Lately, the country began testing the CBDC in about four provinces.

Also, the country’s authorities have reportedly begun making new rules to facilitate the release and implementation of China’s digital currency.