China’s central bank completes top-layer design on digital yuan
If 2019 was the year central banks dipped their toes into sovereign digital currencies, 2020 seems to be the year they go all in.
People’s Bank of China [PBoC], the central bank of China, stated that the top-layer design on the central bank-issued digital currency [CBDC] has been completed. According to Molly from HashKey Hub, the central bank mentioned that the “joint testing” for the DC/EP - Digital Currency Electronic Payment system, referred to as the digital version of their fiat currency, the yuan, has concluded. She tweeted,
The report from the Chinese Financial Times, was retweeted in an English version by Matthew Graham, CEO of Sino Global Capital. The report was titled “Push Financial Standardization Work to a New Level.” Financial standards was the focus of the report, highlighting the importance to issue new standards for disruptive technology.
Notably, four key disruptors were mentioned with the absence of digital currencies,
“Seventeen financial industry standards, including artificial intelligence, blockchain, big data, and cloud computing are being developed.”
On the implementation of financial standards, the report described the impact as “effective.”
The implementation would be based on the Certification Body System of the Chinese government to “promote the implementation of financial technology product.”
The report stressed that the “top-level design” of the digital currency has been completed and that the PBoC will now conduct “solid research” on the underpinnings surrounding it.
Security is a key issue in the implementation of the DC/EP, with the report providing due emphasis on a “security barrier” and to “improve cybersecurity.”
Graham, speaking to AMBCrypto, stated that China’s embrace of blockchain technology is a further testament to their “DCEP vision.”
Additionally, if the US consumes itself with “infighting” and does not respond to the Asian giant taking hold of this disruptive technology, it will be left behind.