The People’s Bank of China (PBoC), the country’s central bank, has completed the “top-level” design of its anticipated central bank digital currency (CBDC), local news outlet Sina reported on 10 January.
According to the report, the PBoC was able to finish the “top-level design, standard formulation, functional research and development”, as well as a joint testing of its planned digital yuan.
The bank announced the development in a paper, called “Inventorying the Bank’s 2019 FinTech”, which not only highlighted its plans to improve the financial industry network’s cybersecurity, but to also formulate rules for the accreditation of critical information infrastructure.
Even though last week the PBoC stated that the development of the digital yuan was “progressing smoothly”, we still do not know its official launch date.
We do, however, know that the much-anticipated CBDC will first be distributed to commercial banks, and then users and businesses will be allowed to register digital wallets with these banks.
As previously reported by The Chain Bulletin, the first city to test the digital currency appears to be Shenzhen, with Suzhou following closely after it.
It is expected that the tests of China’s CBDC will go beyond the central bank system and that they will also encompass service scenarios such as transportation, education and health care.