Towards the development of China Bank Digital Currency (CBDC), Chinese Banks have started to conduct research and development processes for the currency.
The digital Yuan has been subject to global news since the People’s Bank of China announced creating a digital currency.
The digital Yuan since then has been said to be a rival to facebook’s Libra currency.
The country is reportedly trying to oust the US dollar from its global domination with the launch of the digital Yuan.
The digital Yuan being subjected to research is still being developed by People’s Bank of China.
However, there has not been any official statement about the launch date of the currency, but the central bank announced it is making steady progress.
Alongside this, the country has started implementing a law governing cryptographic password.
The law was to enable the development of the cryptography business and ensuring the security of cyberspace and information.
The law has been passed since October 2019 and slated to begin implementation Jan1. 2020.
The currency was to launch 2019 but is still expected as major Chinese banks announce they would research and develop a sovereign electronic currency this year.
The Asian country has devoted around five years to research and develop systems for its digital Yuan.
The country’s central bank also launched its pilot project for the currency in December 2019.
Similar to its legal tender, the CBDC is going to be controlled entirely by the People’s Bank of China.
This is unlike private and decentralized cryptos since any single entity does not control them.
The digital Yuan will 100 percent be backed by cryptos since any single entity does not control them.
Continued surge of digital currency
Alongside China, Bank of Japan said they are conducting technical and legal research” in the field of cryptocurrencies.
This was announced by the governor of the Bank, Haruhiko Kuroda.
He said, however, that Japan has no plans for issuing a digital sovereign currency as crypto demand is not high.
In December 2019, China announced that the country’s four major state banks were part of the CBDC growth.
Listed banks are China Industrial and Commercial Bank, China Construction Bank, Bank of China, and Agricultural Bank of China.