It seems that many countries around the world are embracing the idea of cryptocurrency and not just in the private sector. Venezuela launched the Petro token in 2018 to help combat the growing problem of hyperinflation and several cities have launched their own cryptos which serves as an incentive for citizens to carry out certain tasks such as community development and so on.
One of the most prominent upcoming examples of a national cryptocurrency is the CBDC coin that will be launching in China in the next few months as it has received a lot of attention due to China’s large population as well as their previous ban on all cryptocurrencies. Not a lot of details are known about the upcoming token but according to Binance research, the token will not require a bank account to function and when it is available to China’s population, over 1 billion people will be using the token.
These new findings were published on August 28, 2019, by the research arm of Binance and according to them, they do not require a bank account to be transferred between various parties and this is thanks to the fact that it is loosely coupled. Loosely coupled in this regard means that it is made up of various components that do not require each other to function properly and this serves as an added benefit for the token.
The end goal of these efforts is to make sure that the CBDC can be transferred seamlessly between parties and can have a turnover rate at the rate of fiat to cash and can also be promoted and used internationally. This is not surprising as one of the selling points of cryptocurrency is its dynamic use across the globe.
While this is going on, the report states that the CBDC is reluctant to make use of smart contracts in their infrastructure as they do not want to involve anything that goes beyond basic monetary requirements and this is due to the fact that the implementation of smart contract might make their token qualify as a security which is not the end goal as it could harm the token’s usability. It has also been clarified that the token will not be launched in November 2019 contrary to some rumors as a source close to the bank has denied these claims.