The day before, a representative of the People’s Bank of China announced that the country was ready to introduce its own digital currency (CBDC).
Mu Changchun, deputy director of the payment and settlement solutions department at the Central Bank of China, said that the digital currency prototype was already ready, and the development team had already fully developed the blockchain architecture for it. It is noteworthy that the Chinese digital currency will not be fully based solely on the blockchain architecture, as this would serve as an obstacle to its prevalence among retail payment systems.
According to Changchun, research and development on digital currency started back in 2014. CDBC from China People's Bank is for a two-tier operating structure, where the first level is the Central Bank of China, the second level is commercial banks. Such a system, according to Changchun, is ideal for the conditions prevailing in the country.
A two-tier system is preferable for the Celestial Empire in connection with the complex economy of the state, a high population, and an impressive territory. It is assumed that the development will be highly appreciated by local organizations, in addition, the launch of CDBC will affect the appearance of new jobs, the development of skills among talented programmers.
Meanwhile, Shaofu Jun, chairman of UnionPay’s Chinese payment system, noted that achieving goals would not be easy. Despite the fact that the developed CDBC solves the problems associated with cross-border payments (transaction processing time, the effectiveness of traditional payment systems), it may be difficult to understand the management of processes, as well as the regulation of this sphere of exchange of funds with other states.
