After five years of research and development in the digital currencies, and China is on the verge to be launched. According to the rumors, eight companies and the banks, for the first time, have access to the digital currency.
Paul Schulte and worked until 2012 as head of financial strategy at China Construction Bank, one of the four largest banks in China. He tells Forbes that the companies and the banks, in the first instance, to gain access to the money: Alibaba, Tencent, four of the Chinese banks, as well as the Union Pay, the largest card issuer in China.
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Not like the bitcoin
The digital currency at the central bank of China, the Central Bank of Digital Currency. It is also often abbreviated as CBDC. You will need this currency, therefore, is not to be confused with a cryptocurrency such as bitcoin, and operation. This is conrmed by the Chinese authorities, besides yourself, also) (note: while Google Translate is turn on).
The CBDC works with any type of blockchain, but in a closed-loop system. So, you have to create your identity, to authenticate in order to use the system. Residents of China’s currency exchange by commercial institutions.
However, you must be in the currency of China should not be underestimated. For the Chinese, the “Volksbank” in China, the central bank has the ambition to become a digital-world currency have to be. With close to 1.4 billion potential users, it is not a crazy idea. In addition, China continues to be the trend of the digital currency in the country and abroad, carefully. An important detail is the fact that the Chinese cryptocurrency that is not designed for the digital renminbi to replace it, but to use the physical euro banknotes and coins in circulation and replace them.
The power to go back to the bank
A digital currency sounds good, but it is the goal of China’s less idealistic. The new currency will be the Chinese, the “Volksbank” in the power of payments data, nothing to go on.
Professor Ho from the University of Hong Kong, puts it out of TheBlockCrypto:
“Commercial banks have a backlog because of the competition for mobile payment providers. ‘Big data’, with respect to the fee and usage is now dominated by AliPay and WeChat Pay, in China. I’m sure the Chinese, the Volksbank with a new digital currency to their own platform in developing ‘big data’ to save your changes”
The new coin, it seems that, in this sense, the Chinese version of Facebook’s Balance to it. By focusing on online to mobile payment in China’s digital currency services, such as AliPay and WeChat Pay, wegconcurreren. Mu, Changchun, the People’s Bank of China (PBOC) is going to be in on the alleged competition, According to MU, can Balance of 1,000 transactions per second. The Chinese currency has been designed to provide up to 300,000 transactions per second, to be able to do. He gave some context: at the height of their Singles Day in 2018, there were 92.771 of transactions per second that is done.
A closed blockchain
Mu, Changchun said that, this is only possible because of the Chinese bank, and the currency is not fully open and accessible to the blockchain to trust. They are used in a permitted blockchain that the central bank is the central focus. Instead of an algorithm can be used to set the supply limit, such as bitcoin, ” says Mu is the fact that the central bank is the supply self-regulates.
The Chinese digital currency may already be on the 11th of november, will be launched in
An anonymous source told Forbes that the technology of the Chinese cryptocurrency, which was introduced last year, and that the cryptocurrency is already being launched on the 11th of november. This is the busiest day of the year, the Chinese retail shops, namely, the Singles Day. Maybe, you know, to this day, however, because Alibaba is in their app to not miss a chance to let you to offer discounts at that time.
The eight institutions are responsible for the spread of the Chinese digital-mistake. The source says that they will be required to ensure that the 1.3 billion Chinese people and others who do business in the renminbi moving on to the cryptocurrency.
Ultimately, the Chinese central bank, the digital currency will also be made available to U.s. investors and U.s. banks.
It Is the new currency of China, is a threat to bitcoin? That won’t be necessary. Bitcoin is decentralized and fully independent. There is no central entity to which the regulations come up for the bitcoin. Millions of people are already using bitcoin, and the network becomes more secure it will be. It can be however many years.