China’s Central Bank Completes Development of ‘Top-Tier’ Digital RMB

The People’s Bank of China announced the completion of the design of the upper level of the national digital currency and readiness to check the stability of the electronic payment system.

According to the published document, the Central Bank has already developed standards, conducted research on the functionality and tested compatibility. The next steps should be to check the stability, security and control tools of the system..

According to the head of the cryptocurrency division of the NBK Changchun Mu, the digital yuan will become an absolutely legal means of payment, ensure the anonymity of users, allow for offline transactions and will be different. from all existing forms of stablecoins and cryptocurrencies.

China's Central Bank Completes Development of 'Top-Tier' Digital RMB

It is known that the digital yuan will function in a two-tier centralized system, with the NBK at the top and commercial banks at the second tier. To receive electronic funds by commercial banks, they must first you will need to reserve an equivalent amount of fiat in the Central Bank. Further, citizens and companies will be able to open personal wallets in these banks in order to be able to use the new means of payment.

China’s Central Bank Completes Top-Later Design and Joint Tests of

Previously, the NBK also reported that the first tests will take place in two cities and will begin in December 2019. The pilot program will affect the areas of transport, education, trade and medical services. However, the official launch date of the digital yuan is still unknown..

text: Ivan Malichenko, photo: Shutterstock

Similar articles