13 August 2020
China’s central bank, the People’s Bank of China (PBoC) has come closer to issue its national digital currency.
According to the reports of Global Times, termed as “industry insiders,” stated that China's central bank along with other private companies has completed the development of digital currency’s basic function.
The People’s Bank of China is working towards drafting laws related to digital currency and its circulation.
An anonymous industry insider revealed the information to Global Times that Alipay's patent is been revolving around the basic function of digital currency that includes payment, circulation, and issuance. The financial arm of Alibaba- Alipay has issued five patents for China’s digital currency this year.
The insider said,
"Judging from the patents, the first step of technological development has been basically completed."
PBoC had stated that digital currency is “progressing smoothly” and that its “top-level” design has been completed.
The central bank of china said,
“We will continue to steadily advance the development of legal digital currencies in 2020.”
The central bank has been working on digital currency since 2014 but the launch date is still not revealed. In the conversion with Global Times, the Industry insiders said that China should accelerate the launch of its digital currency amid the coronavirus (COVID-19) pandemic and economic slowdown.
The vice director of the Advanced Research Institute of Blockchain, Cao Yan said,
"If there is a chance China is considering lowering its interest rate into negative territory as a final option and directing such policy to commercial loans and lending, a circulated digital currency rather than M0 will be able to achieve that."