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China ‘Almost Ready’ to Launch CBDC

August 12, 2019 12:51
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It appears that China’s central bank is all set to launch its own digital currency. According to news portal, CryptoGlobe, Mu Changchun, Deputy Chief in the Payment and Settlement Division of the People’s Bank of China (PBOC), stated recently that central bank would launch its own currency.

The senior official said, “People’s Bank digital currency can now be said to be ready.” Changchun claimed that the central bank has access to a prototype version of the digital currency and that the PBOC has fully adopted and integrated the use of blockchain technology into its infrastructure. He further added that they would not be relying on ‘pure’ blockchain technology, citing difficulties in scaling.

While this news makes the rounds, another interesting development took place in China last month. Bitcoin was recognized as ‘virtual property’, in a court room in China. According to a judgement, Bitcoin is legal to own in China and indicates to holders that they will be protected by the country’s legal system in disputes.

In 2013, the plaintiff had purchased 2.675 BTC for 20,000 yuan ($2,900) from a store on Taobao, which was a Chinese online marketplace, allegedly operated by the defendant, Shanghai Technology Company. In 2017, the plaintiff wanted to access the funds and found the store was closed and could not contact the operator to gain possession of their Bitcoin. The plaintiff further stated in their complaint that the prior to the store being closed, Shanghai Technology Company, did not give any notice to their customers.

Coming back to the story in question, Changchun also provided details on how to distribute the digital currency through a ‘two-tier system’. He said, “The People’s Bank of China is the upper level and the commercial banks are the second level. This dual delivery system is suitable for our national conditions. It can use existing resources to mobilize the enthusiasm of commercial banks and smoothly improve the acceptance of digital currency.”

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