How China’s CBDC Will Integrate Smart Contracts, Latest Progress Revealed

2021-7-17 01:00

China’s central bank digital currency (CBDC) is moving fast towards its deployment. For the first time since the project was launched over 7 years ago, the People’s Bank of China (PBoC) has released a Whitepaper with the digital Yuan or e-CNY’s most important progress.

The project started as a response to cryptocurrencies, such as Bitcoin, in a new world context with a digital economy, the document states. Two years ago, the use of cash in China plummeted. People started paying for things via mobile payment, as demonstrated by a poll conducted by the financial institution.

46% of the participants used no cash with digital and mobile payments accounting for over half of the transactions conducted during this period. In addition to a clear change in their citizens’ payments habits and preferences, the PBoC claims that cash management takes resources that could otherwise be employed for other sectors.

Despite acknowledging the potential of Bitcoin and other cryptocurrencies, the Chinese government views these digital assets as speculative instruments, tools to gain anonymity, and the backbone of illegal activities. Thus, they believe BTC, ETH, and others, “lack intrinsic value” and can’t be used as currencies.

Therefore, the institution argued that their central bank started the e-CNY project to launch a digital version of a fiat currency run by “authorized operators”. This CBDC will work as a hybrid payment instrument with legal tender status.

In that sense, the PBoC clarified that their e-CNY will have the “basic functions of money” (unit of account, medium of exchange, store of value).

The issuance and circulation of e-CNY is identical with physical RMB, while the value of the former is transferred in a digital form. Thirdly, e-CNY is the central bank’s liabilities to the public. Backed by sovereign credit (…).

In addition, the PBoC finally revealed some of the CBDC’s main features, such as smart contracts, private transactions, and clarified that the digital currency will co-exist with their physical Yuan.

What is e-CNY and its key features
E-CNY is a legal tender issued by PBOC. It adopts centralized management and is positioned as a cash payment voucher (M0).

— Sino Global Capital (@sinoglobalcap) July 16, 2021

Implications of Smart Contracts On China’s CBDC

Expanding on these key features, the financial institution said that their CBDC will be able to carry out automatic payment transactions. Similar to a smart contract on a private blockchain, e-CNY can make transactions when certain conditions are met.

In that way, China seeks to usher new business models and promote future innovation. In term of privacy, the digital Yuan will have “controllable anonymity and users will be able to keep part of their data hidden from other, but the PBoC will hold complete supervision.

According to the document, the CBDC has successfully completed its top-level design, function development, and system testing. As a result, the PBoC has been able to move to a system testing phase in “representative regions”.

An official rollout date for the e-CNY is to be announced. The financial institution still needs to determine the level of privacy of the transactions, but many speculate on the possibility that the CBDC will be a big part of the Beijing 2022 Winter Olympics.

China’s digital currency has been heavily criticized. Many fear that the e-CNY will be used to excess further control on the country’s population and gain more control over their financial independence.

A founder partner at Primitive Crypto, Dovey Wan, believes the launch of the digital Yuan or e-CNY will mark the beginning of a conflict between two sides. One could be represented by Bitcoin and BTC holders, the other by e-CNY users:

The fight between absolute sovereign power vs most robust meta sovereign power will mark the start of a major upheaval in our monetary universe.

At the time of writing, Bitcoin trades at $31,928 with losses in higher timeframes and sideways movement in the daily chart.

BTC moving sideways in the daily chart. Source: BTCUSD Tradingview

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Time New Bank (TNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.01 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0020147 (-100%)

china bank progress digital cbdc ago people

china bank → Результатов: 126


Фото:

Coronavirus Forces China to Sanitize Billions in Paper Money, Bitcoin Avoids Such Precautions

China’s central bank, The People’s Bank of China (PBoC), plans to sanitize billions of yuan notes in areas that are worst affected by the coronavirus. The epidemic, which has hit China’s political, economic, and education systems very hard, has pushed the nation’s authorities to take extreme actions to curb the spread of the virus.

2020-2-19 23:20


Bank of China выпустил ценные бумаги на блокчейне

Bank of China, государственный банк Китая, завершил выпуск и ценообразование облигаций на блокчейне для малых предприятий. Об этом говорится в заявлении на сайте BoC. Блокчейн-система Bank of China Использовав собственную блокчейн-систему, BoC выпустил цифровых сертификатов на общую сумму в $2,8 млрд.

2019-12-10 16:24


China Merchants Bank International teams with Nervos for DApp development

China Merchants Bank International teams with Nervos for DApp development - CryptoNinjas China Merchants Bank International (CMBI), a wholly-owned Hong Kong subsidiary of China Merchants Bank, today announced that it is partnering with layered blockchain network Nervos to jointly develop and launch decentralized applications (DApps) for financial services.

2019-10-4 18:51


People’s Bank of China (PBoC) Talks Plans to Fast-Track R&D Related to its Legal Digital Currency

On Friday, August 2, 2019, the People’s Bank of China (PBoC) supposedly held a video conference in which things that needed to be achieved in the second half of the year were elaborated upon. According to The Block, China’s central bank reported its plans to accelerate its goals with regard to a country-wide digital currency […]

2019-8-3 17:24


China’s central bank fast-tracks R&D of its legal digital currency

The People’s Bank of China noted that they are going to track the development trend of virtual currencies of China and foreign in order to strengthen Internet financial risk remediation. After mulling over its centrally owned digital currency, China accelerated its research and development, according to the statement released by the People’s Bank of China […] The post China’s central bank fast-tracks R&D of its legal digital currency appeared first on AMBCrypto.

2019-8-3 11:42


Bank of China упомянул китайского ходлера, который владеет «шестизначным» числом биткоинов

Bank of China, который входит в «Большую четвёрку» крупнейших государственных банков Китая (8 место в рейтинге Forbes Global 2000), выпустил инфографику о биткоине. Об этом сообщил директор по стратегии в компании Blockstream Самсон Моу: Вчера Bank of China опубликовал статью о биткоине.

2019-7-29 08:39


People’s Bank Of China (PBoC) Says Security Tokens (STO) Are An “Illegal Financial Activity In China”

China’s Central Bank, the People’s Bank of China, reported to the South China Morning Post its decision concerning security token offerings, noting that they are illegal in the country. The bank’s deputy governor Pan Gongsheng appeared at a summit in Beijing and there, he discussed the “illegal” financing activities that have been effectuate with STOs […]

2018-12-10 06:11


Крупнейшие банки Китая протестировали блокчейн-платформу для передачи активов

Самые крупные китайские банки успешно испытали блокчейн-платформу для решения вопросов, связанных с передачей активов между различными учреждениями. Как уточняет CheрiCap, в тестировании платформы Ping Tai приняли участие банки Bank of China, China CITIC Bank и China Minsheng Bank. Они уже произ...

2018-10-30 19:26


Фото:

Китайский банковский гигант выпустил ценные бумаги на блокчейне на $1,3 млрд

Пятый по величине коммерческий банк Китая Bank of Communications завершил крупную эмиссию ценных бумаг, обеспеченных ипотекой (RMBS), с использованием блокчейна. Ведущим андерайтером выпуска ценных бумаг стала China International Capital Corporation, в нем также приняли участие два крупнейших коммерческих банка страны — Commercial Bank of China и China Merchants Bank.

2018-9-27 14:14


China’s Central Bank Issues Warning to Cryptocurrency Investors

China’s central bank has issued a new public notice, warning citizens of the dangers of cryptocurrency and ICO investing. Despite government crackdowns culminating in a blanket ban on all ICOs, the People’s Bank of China (PBoC) admits that cryptocurrency trading activity among domestic investors using offshore exchanges continues to thrive.

2018-9-19 22:25


RippleNet Strengthens Emerging Markets Access into India, Brazil and China

According to the World Bank, global remittance payments are on track to grow by 3.4 percent or roughly $466 billion in 2018, with India and China having the highest incoming flows in 2017. Together with this massive flow of capital, emerging markets are home to 85 percent of the global population and account for almost … Continued The post RippleNet Strengthens Emerging Markets Access into India, Brazil and China appeared first on Ripple.

2018-6-17 12:50


JD.com’s Finance dep to issue Blockchain Asset-Backed Securities

JD Finance, a subsidiary of Chinese e-commerce giant JD.com, has made public its plans to issue asset-backed securities (ABSs) on the blockchain, as reported by local media on June 13. JD Finance will issue the ABS in combination with Huatai Securities and Xingye Bank according to China’s Securities Regulatory Commission (CSRC) via its media outlet […]

2018-6-16 15:18


Фото:

Chinese e-commerce giant JD.com has released plans to issue asset-backed securities (ABSs) on the blockchain, local media reported June ..

Chinese e-commerce giant JD.com has released plans to issue asset-backed securities (ABSs) on the blockchain, local media reported June 13. According to China’s Securities Regulatory Commission (CSRC) via its media outlet Securities Times, subsidiary JD Finance will issue the ABS in conjunction with Huatai Securities and Xingye Bank. Together, the partners will asses blockchain’s potential

2018-6-13 20:28