China’s central bank announced that the institution is nearing the release of its digital currency. According to Mu Changchun, deputy director of the payments unit at the People’s Bank of China (PBoC), explained that its researchers have been hard at work since last year to complete the systems needed to support the digital yuan offering.
Wang Xin the research bureau head at the PBoC, reported that the central bank has been looking at the Libra situation with “high attention,” and could ramp up development of its own digital currency.
According to reports, China’s central bank would launch its digital token through a two-tier system, under which both the PBOC and commercial banks are legitimate issuers. The PBOC said it wouldn’t rely on blockchain exclusively, and would instead maintain a more neutral stance on which technology it decides to use.
According to patents registered by the central bank, consumers and businesses would download a mobile wallet and swap their yuan for the digital money, which they could use to make and receive payments. Crucially, the PBOC could also track every time money changes hands.
Noteworthy, at the latest count, there have been 52 patents filed under the name of the Digital Currency Research Lab of the PBoC, with the latest published in Oct. 9 2018, having been submitted on March 26. 2018.
On other hand, the global central bankers take a skeptical view on Facebook’s plans to create a cryptocurrency alongside a consortium of major companies including Visa and Uber. Called Libra, the currency hasn’t gone unnoticed by the PBOC, which said last month that it should come under central bank oversight.