The People’s Bank of China recently confirmed that the development of its digital currency is “progressing smoothly”. Though the central bank didn’t offer any other detail like a launch date or how the currency will co-exist with mobile money – already a big deal in China.
A number of details have been recently shared by WSJ and the BlockCrypto regarding the cryptocurrency and these details help define how the digital currency will actually work or at least what the People’s Bank intends:
- Like WeChat and Alipay, China’s Digital Currency will need a digital wallet but unlike the mobile money services, digital wallets won’t need to be linked to a bank account since commercial banks will be the ones issuing the digital wallet.
- The cryptocurrency won’t need an internet connection to process payments which is great in case of natural disasters or anything that could lead to network outages
- Ordinary transactions are said to be anonymous – at least to marketers. Chinese authorities will be able to track purchases and activities to a “certain extent”. It’s not yet clear but the official position on why this is necessary is because of a need to prevent vices like money laundering, tax evasion and terrorist financing.
- The digital currency will reportedly be piloted in two cities; Shenzhen and Suzhou
- The Chinese Central bank is partnering “7 state-owned commercial banks and telecoms” for the roll-out of the digital currency.