- The speedy development is a result of fears and uncertainty surrounding the COVID-19 outbreak.
- Alipay has already announced five patents that will handle various areas of the digital currency functions.
- Although there is no certain date for take-off, there is high optimism that the currency will be launched sooner than expected.
The People’s Bank of China (PBoC) has come very close to issuing its digital yuan to the public as basic development for the CBDC has been completed.
Reports revealed that the Chinese central bank has just completed the basic functions of the Chinese digital currency.
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With the completion of the basic features, the country is now very close to realizing the dream of setting up its digital currency.
Speedy development caused by the stress from COVID-19 outbreak
According to an insider source of the project, that prefers to remain anonymous, the quick development of the project was due to the fears and economic uncertainty caused by the coronavirus outbreak.
The Chinese central bank wants to develop a currency the economy can fall back on, in case the fiat currency becomes too volatile and unstable. According to the central bank, the new digital currency will serve a good purpose for its zero and negative interest rates.
Patents for the digital currency have been announced
On a similar note, Alipay, the payment subsidiary of Alibaba, has announced five patents concerning CBDC between January 21 and March 17.
The patents will be covering several areas, including anonymous trading support, digital wallets, transaction recording, as well as issuance. These patents are vital for the different functions of the digital currency.
According to the anonymous close source to the development, the country has finished the first stage of the development. “Judging from the patents, the first step of technological development has been basically completed,” he said.
Preparing for digital take-off
As a preparation procedure, China established a New Law that will enable the regulators to classify crypto passwords.
The development of the digital currency began earlier in 2014. But as of then, the whole idea of launching the digital currency was largely not certain.
But the nation has become more optimistic about launching the currency after recent developments, including the support from the Chinese government. Although the formal launch date is still not known, there is a high expectation that it will come sooner than initially projected.
At the moment, other central banks are interested in setting up their country’s digital currency, but it seems China is far ahead of them in terms of preparation and development.