Chinese Central Bank: China Will Not Launch A Cryptocurrency

Saturday, 31 Aug, 2019

Earlier this month, the central bank revealed its intention to accelerate the pace of the research and development of its digital currency in the forthcoming months.

However, the researchers noted the lack of a clear technical roadmap. Forbes, in the meanwhile, quoting unanimous sources, has stated that the technology behind the CBDC has been completed and that it could likely be introduced on November 11.

What sets China's cryptocurrency apart from other potential competitors in the space is the fact that while Facebook's Libra is still battling against the United States lawmakers for an overarching approval and Bank of England Governor, Mark Carney, is merely advocating the idea of a digital currency overshadowing the U.S. dollar dominance, China is ready to launch. Last year's Singles Day peak volume of all transactions in China was 92,771 transactions per second, which was well within the DC/EP limits, because it is not completely backed by the blockchain architecture, the DC/EP is centrally managed by Chinese financial authority. That "means the network construction has just started after five years of research".

The report also puts forward that the People's Bank of China (PBoC) is considering utilizing smart contracts in their infrastructure, but is hesitant to implement anything that would extend beyond "basic monetary requirements" - a term that has yet to be defined. Sign up to Debrief. This can be harmful if the broader adoption of the digital currency is done in the future. Operating in tandem, the second layer will allow individuals and businesses to access it through their domestic commercial banks, the report claims.

The Central Bank noted that the Libra project poses as a threat to the national fiat currency, the Yuan, but several experts have already condemned these comments.

The latest Binance Research, while showcasing China's CBDC initiative, highlighted its possibility of being a renminbi (RMB) replacement. "We're planning for them to come", Mnuchin said Wednesday in an interview, declining to say whether the September encounter would happen.

Yesterday, Forbes's crypto editor, Michael del Castillo, came out with an extensive report on the People's Bank of China (PBOC) soon-to-launch cryptocurrency.