Thursday, January 30, 2020

The Chinese CBDC Will Have Transactions Approved by the PBoC

A lot of people wonder about China’s CBDC. Little information has come to light so far, yet new details continue to trickle in over time. 

In the most recent update, some of the suspicions have been confirmed by official sources. 

China’s CBDC Will be Fully Centralized

First of all, this CBDC will – naturally – be completely centralized with no room for debate.

This also means that the management system for the digital renminbi will be centralized and in the hands of very few network participants. 

It seems unlikely that this centralized approach will come to change soon, if ever. 

Interestingly enough, the issuance of this CBDC will be different from what most expected.

Albeit it is issued by the PBoC, they will not oversee the direct distribution.

Instead, that aspect is taken care of by various partner commercial banks throughout China.

However, the confirmation of CBDC transaction on the network will need to be approved by the Chinese central bank at all times. 

There are still several unanswered questions associated with this project, however.

Whether a blockchain or regular database will be sued, is one of the more pressing matters.

Give the centralized control of this CBDC, both options remain on the table at this time.

However, there is a strong focus on security, which seems to indicate that a blockchain is more favorable. 

Image(s): Shutterstock.com

The post The Chinese CBDC Will Have Transactions Approved by the PBoC appeared first on NullTX.



The Chinese CBDC Will Have Transactions Approved by the PBoC