At last, the long wait is over; this is according to the people’s Bank of China. Their long-awaited project to produce a digital coin is now complete.
However, only the prototype of the digital currency seems to be ready, the full adoption will take some time, though, and the exact date is yet out. The prototype is based on blockchain architecture and has been in development for five years now, a reveal from the deputy director of the people’s Bank of China, Mu Changchun, has shown.
The reveal by the Bank’s deputy director aired on a local securities channel, Shenhai Security News on 10 August 2019 to be precise; where the bank’s deputy director spoke in detail how this digital coin would transform China’s retail market.
How does the coin work?
The deputy director in his statement stated that, “although this new development will go a long way in improving China’s status in the world as a power in Blockchain technology, it will be very complicated for a complete rollout of the project as a whole, the project requires very high performances that is crucial to the running of the technology.
China has a very complex economy; it will make use of a two-tier operating system to get the technology up and running. The two-tier operating system will help distribute the technology in the vast Chinese territory and help reach as many people as possible. Since the bank is on a higher level than ordinary commercial banks, the uptake of the technology will not be very difficult, and according to Mu, further innovation and invention will arise due to this technology by other players in the Chinese market.
The technology will change the retail environment and will help greatly those retail chains manage high volumes of trade daily.
Is China trying to beat Libra?
A recent report by Coin Telegraph, earlier on indicated that China is trying to beat America in matters to do with the nationalization a digital cryptocurrency. However, Facebook is currently facing hurdles in its ambition to have its digital coin in the future. The political climate in America is mostly to blame as fears of proper regulations still linger, and it is hoped that a solution will come sooner rather than later to keep the project up and running.
The date and the time for the launch of China’s cryptocurrency remains a mystery as of now. The upbeat remarks by the deputy governor are still hot air as a lot still needs to be accomplished. Hopefully, this air of doubt will be cleared soon to usher in a new wave of technology unseen before.