In a smooth progress to adopt a digital currency, the People’s Bank of China (PBoC) has completed the “top-level” design of its new digital currency dubbed as Digital Currency Electronic Payment “DCEP “.
In a recent paper, the central bank said, “The top-level design, standard formulation, functional research and development have been completed.”
The bank earlier said work on the state-backed digital currency is progressing smoothly. “We will continue to steadily advance the development of legal digital currencies in 2020.”
However, PBoC has not unveiled the launch date of its new digital currency .
“The much-anticipated digital yuan will be first distributed to commercial banks and then users and businesses can register digital wallets with these commercial banks,” the central bank said.
The first cities to use the digital currency will be Suzhou and Shenzhen.
China will not be the first country to launch a state-backed digital currency . Venezuela has already launched its own digital currency the “petro” and is now accepting it for its sales of oil and minerals.
However, China would be the first country to apply the technology on a comprehensive scale. It has already achieved much down the road to be cash-less society. Almost half the country are mobile payment users with apps like “Alipay” and “WeChatPay”. Chinese president Xi Jinping is already known to consider blockchain as “ten times” the importance of inventing the internet.
Blockchain technology is widely used in China, thanks to President Xi Jinping’s support to the technology.