China’s Central Bank Delays Research on Digital Yuan

China’s Central Bank Delays Research on Digital Yuan

The People’s Bank of China (PBoC), the country’s central bank, has put off research on digital yuan, which was scheduled for the first quarter of 2020.

Nevertheless, the launch of the central bank digital currency (CBDC) was not affected, as the PBoC has the necessary resources and talent to complete the project.

Last month, the PBoC has announced that the digital currency project was progressing and the design was finished.

However, the coronavirus, which has its focus on China and is rapidly spreading around the world, affects organizations worldwide.

China take tough measures against crypto mining farms

In a bid to control the Coronavirus, China’s authorities are taking tough measures against crypto mining units. This led some Chinese BTC mining farms to end their operations.

Since Chinese BTC mining farms represent a significant portion of mining space, the crackdown will definitely impact the BTC price in the coming days.

Normally, Chinese mining units have broad infrastructure to mine BTC. Thus, broad offices and industrial units are an ideal environment for the rapid spread of virus.

The epidemic affected some cryptocurrency-related activities such as the delay of TOKEN2049; a major crypto-event held every year in Hong Kong.

Thus, TOKEN2049 was rescheduled from mid-March to 7-8 October 2020.

Despite efforts to control the deadly virus through closure of border crossings with mainland China, Hong Kong was experiencing even greater uncertainty because of local anti-government protests.

Earlier, Cryptolydian reported that the central bank has completed the “top-level” design of its new digital currency dubbed as Digital Currency Electronic Payment “DCEP”, in a smooth progress to adopt a digital currency.

Digital yuan to be first distributed to commercial banks

 “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.

Thus, the first cities to use the digital currency will be Suzhou and Shenzhen. 

In a related context, 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.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.