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Today, representatives of the People’s Bank of China (PBOC) discussed the further acceleration of the progress of the Digital Reminbi in a closed meeting.
At the China’s Finance 40 Group, the People’s Bank of China (PBOC) Payment and Settlement division Deputy Chief, Mu Changchun, said the country’s central bank digital currency (CBDC) can be said to be ready now and will soon roll out.
Changchun declared that the Digital Money Research Group has completely integrated blockchain architecture for the imminent currency which has been under research and development since 2014.
A crypto enthusiast under nickname Dovey Wan, on twitter further echoed other matters discussed at the closed door meeting.
In a closed door PBOC planning meeting today, further accelerate the progress of Digital Reminbi becomes the main agenda of it. And PBOC executive brought up both Libra and Bitcoin, claimed both can’t meet the expectation of a highly scalable and parallel payment system
— Dovey Wan 🗝 🦖 (@DoveyWan) August 10, 2019
A new ticker of Chinese digital currency has become known; instead of calling it CBDC, PBOC will use the acronym “DC/EP”. Judging by the ticker, we can assume the main use case of digital fiat currency is payments.
“Instead of calling it CBDC, PBOC refers it as “DC/EP” (digital currency and electronic payment), so it gonna emphasize more on payment/settlement,” Dovey posted on Twitter.
The regulator did not neglect to keep discussing of other alternative currencies, such as Libra and Bitcoin. According to the participants of the meeting, both of them can’t live up to expectations in the position of the use cases as the payment systems, mainly because of the low scalability of the networks.
“Both Libra and Bitcoin, claimed both can’t meet the expectation of a highly scalable and parallel payment system,” she added.
The Main Issues Discussed On Forum
Among the meeting’s highlights are:
- The inability of the public blockchain to satisfy all the needs of banking and the development of the private chain of the PBOC. Regulators intend to create such a system that will be compatible with any other systems “no matter you are on a Blockchain system or transitional banking system, digital payment or POS machine, our system can be compatible.” At the moment it is not clear whereby the PBOC plans to achieve such occasions.
- Facebook cryptocurrency may be a potential risk to the Chinese market. Regulators fear to lose financial monopoly. Besides, representatives of the People’s Bank of China also expressed dissatisfaction with the predominance of the US dollar in the Libra’s reserves, which is not unexpected given the protracted trade war between China and the United States.
3. It will be “ledger agnostic”
this is quite interesting as “no matter you are on a Blockchain system or transitional banking system, digital payment or POS machine, our system can be compatible”
How it can be interoperable with both onchain and offchain remains to be seen
— Dovey Wan 🗝 🦖 (@DoveyWan) August 10, 2019
- The new PBOC system will be based on a valid smart contract, which will be limited to the functions of the currency. Consequently, such bizarre things as the DAO are unlikely to be implemented on the NSC smart contract platform.
It should be noted that, according to the majority of those present, the fiat digital currency should be centralized and compatible with the current model of “central bank – commercial bank”.
China appears to be ready to take defensive countermeasures. And information about the completion of the development of its own digital currency is proof of this.
“China is able torelease its analogue of Libra,” the cofounder of the Chinese technology giant Huawei, Ren Zhengfei, said in July.
China did not wait for someone to get ahead, and soon we can become witnesses to the unprecedented development of a leading tech government.