The China CBDC launch is one of the most important milestones in the history of central bank digital currencies (CBDCs), the cryptocurrency history, and the global economic history.
Media reports are buzzing that the central bank of China, The People’s Bank of China (PBoC) is moving step by step towards issuing its national digital currency.
Per the report, in collaboration with private firms, PBoC tends to have completed the development of the basic functions of the digital currency. The central bank of China is said to be drafting relevant laws for circulating digital Yuan.
It is interesting to note that recent patents of a China-based online payment platform Alipay tilt more towards the basic function of digital currency, such as circulation, issuance, and payment.
Moreover, Alipay is the financial arm of the tech giant Alibaba has publicized around five patents linked to digital currency of China earlier in the year. So, apparently, the first phase of technological development is complete.
China CBDC launch ready?
At the beginning of the year, PBoC stated that the “top-level” design had been complete, and the digital currency is “progressing smoothly.”
The central bank also stated that they would gradually advance the development of the legal virtual currencies in the year 2020. Since 2014, the digital Yuan of China has been in works; however, the date of China CBDC launch is still not known.
Nonetheless, analysts are of the opinion that the process of launching China’s digital currency should be accelerated amidst the coronavirus pandemic and the global economic slowdown.
It has been confirmed by the World Health Organization (WHO) that banknotes and coins carry viruses on them. A study from Germany found that coronavirus can survive on the banknotes, coins, and exterior of ATMs for many days.
Per the Director of Blockchain Research at Renmin University in China, Yang Dong, this tends to mean that this is high time to roll out the digital Yuan and the Chinese government may be taking the China CBDC launch more seriously.