On Saturday, it was revealed that China is almost ready to unveil its Central Bank Digital Currency (CBDC). Deputy Director of the People’s Bank of China (PBOC), Mu Changchun, has previously publicly
voiced opinions about Libra. Now he says the Chinese CBDC is ‘ready’ without giving any time scales.
The details about China’s planned CBDC are highlighted by
Beijing News, include that it’s unlikely to be blockchain-based. It will have a two-tier structure involving the central bank issuing the currency to banks or institutions, with these banks circulating the currency amongst their customers. And the digital cash will be 100% backed by central bank deposits from commercial banks and institutions.
China has been exploring a CBDC since 2014, and it has committed significant resources. Currently, there are 996 staff at the Digital Money Institute.
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