The People's Bank of China has reportedly confirmed its intentions to launch China's central bank cryptocurrency in the near term.
The representative of the payment department of PBOC stated that the bank has already created a currency prototype after long-lasting development. The project has been based on the blockchain architecture.
However, the currency CBDC is unlikely to be fully created on the blockchain. It was mentioned that the combined approach makes CBDC's handling capacity sufficient for retail payments.
Notably, the Bank launched the development of the cryptocurrency project back in 2014, and eventually managed to enter final straight.
According to the available information, CBDC is expected to feature a 2-layer system. In particular, the first one will be the Central Bank and the second – commercial banks.
The announced cryptocurrency is said to be designed to reduce risks in the Chinese financial system and boost its performance.
At the same time, the representative of UnionPay said at the meeting China Finance 40 Group that PBOC would definitely face different challenges on this path. However, CBDC has good potential for cross-border payments.