• The digital currency is likely to be ready after working on it for five years.
   
• This digital currency won’t depend entirely on the blockchain, which is the main support of cryptocurrencies.

China is soon to introduce its virtual cash which can be used for stability in the country. China hugely disagrees with cryptocurrency; however, it seems to announce its own virtual cash. The People’s Bank of China stated that the digital currency can then said to be ready after working on it for five years.

Mu Changchun, Deputy Chief for payments stated that this digital currency is said to have a more complex structure.

China has a reason to launch the monetary format as soon as possible. China has had an argument about cryptocurrency raising disorders, with speculators selling the regular cash to purchase the virtual cash currency. This new method may create stability.

Mr. Changchun also stated that digital currency would work in two-tier split, it would have People’s Bank as the main bank and all other commercial banks below it, seemingly to help it deal with the great size of China’s population and economy. This digital currency won’t depend on the blockchain, which is the main support of cryptocurrencies, as the throughput necessary for retail could not be delivered.

There’s no surprise in China wanting its own digital currency system that it could control, as officials have given ample of time to boost the country’s independence from foreign technologies, and this can be considered as the next logical step towards it.

Release date of currency in the market has not been announced yet.

About People’s Bank of China:

The People’s Bank of China was established on 1^st December 1948 with the merger of the Beihai Bank, the Xibei Farmer Bank, and the Huabei Bank. The State Council then decided to make PBC Bank as the central bank of China in September 1983.

Source Credit:

https://www.engadget.com/2019/08/11/china-central-bank-digital-currency-ready/