The People's Bank of China (PBOC) has completed the next stage of the development of the state cryptocurrency in cooperation with private companies. Now, the PBOC is creating the legal framework for the conversion of the digital renminbi.
According to the Global Times publication, in which the publication refers to “industry insiders,” the PBOC has completed the development of the main characteristics of the state cryptocurrency in cooperation with private companies. According to the publication, now the Central Bank of China is developing appropriate laws for the conversion of the digital renminbi.
An anonymous insider told the Global Times that the latest Alipay patents relate to the core functions of the digital currency being developed, including circulation, payment and issuance. Alipay, the financial division of Chinese technology giant Alibaba, received five patents related to China's digital currency earlier this year.
Judging from the patents, the first step of technological development has been basically completed.
Global Times sources also said that China should expedite the launch of its digital currency amid a coronavirus pandemic and economic downturn.
If there is a chance China is considering lowering its interest rate into negative territory as an final option and directing such policy to commercial loans and lending, a circulated digital currency rather than M0 will be able to achieve that.
Managing director, Digital Renaissance Foundation