Central Bank Official states PBoC Digital Currency needs crypto features, such as increased transactions privacy, would help provide a future digital currency with a competitive advantage.
7 March, AtoZForex – According to the head of the People’s Bank of China digital currency research, Yao Qian, the digital currency issued by the central bank should have elements of cryptocurrency.
Central Bank Official States PBoC Digital Currency Needs Crypto Features
Mr. Qian has shared his latest remarks in regards to the technological approach related to the development of the central bank-issued digital currency (CBDC). He has claimed that some of the cryptocurrency features, such as increased transactions privacy, would help provide a future digital currency with a competitive advantage. Mr. Qian has also stated that PBoC will most likely centralize the issuance of the CBDC.
He has been quoted as saying:
“At the current phase, CBDC may mainly focus on digitalizing the fiat currency. But it’s inevitable for CBDC to integrate more features in the future. An approach that just rigidly mimics and digitalizes the fiat currency may undermine the competitive edge of CBDC in the long term.”
The Governor of PBoC on central bank-issued digital currency
The PBoC digital currency research lab director’s remarks also provide a new perspective into the matter of China’s central bank on the cryptocurrency issuance. His comments appear following those of Fan Yifei, the vice governor of the PBoC. Mr. Yifei has made it clear that CBDC will be different from the decentralized cryptocurrencies.
The bank’s official has further stated that the transactions via CBDC will be visible to the central bank since the digital currency will not be built on Blockchain. The central bank will be functioning as a third party to monitor the potentially illegal activities.
Yet, Mr. Qian has stated that he believes a Chinese CBDC should include some of the key cryptocurrency features. He also stated that a certain degree of anonymity might be adopted by a Chinese digital currency. As per him, the central bank should look into the advantage of a more private transaction environment. This would improve the user experience and privacy protection.
He has stated:
” anonymous front-end with real name back-end.”
Think we missed something? Let us know in the comments section below.