The Central Bank Digital Currency (CBDC) of China also known as the Digital Yuan has just undergone another development phase as China has completed the construction and development of the background architecture of Digital Yuan according to a Chinese Official. This brings CBDC one step closer to its launch. However, China still hasn’t released the launch date of its digital currency.
Recently, the Ex Vice Chairman of the China Social Security Fund Council Wang Zhongmin appeared in an “online 2020 Fintech Development Forum” held on June 20, 2020, in Beijing via live broadcast. There, Wang Zhongmin announced the news that the Central Bank Digital Currency has undergone background architecture development as well.
China seeks to develop a payment infrastructure
At the online Fintech Forum, the Vice-Chair described his viewpoint regarding the digital currency. Explaining his viewpoint, Wang Zhongmin said that the “digital currency will present a new format” in various aspects.
China is currently looking to develop a payment infrastructure where cryptocurrencies and Sovereign digital currencies can exist together. In the eye of Wang Zhongmin, such kind of system will generate a competitive and cooperative environment in the cryptocurrency space. Wang said that the competition in the crypto space has already been increased due to the COVID-19 pandemic.
Furthermore, he said that governments and technological organizations are taking more and more interest in the development of good payment infrastructure.
Digital Yuan is currently in the testing phase says Vice Chair
After going through various development stages, the Central Bank Digital Currency is now in the testing stage according to Wang. For the initial trial of digital yuan, four cities were selected including Shenzhen, Chengdu, Suzhou, and Xiongan. Major Chinese payment and tech firms such as Alibaba are supporting and helping the People’s Bank of China during the testing and development of CBDC.
China has not yet revealed when it will officially launch its digital currency however it is expected to occur very soon. China is currently working on devising laws for the implementation of CBDC and its launch in the country.