China's national digital currency should contain elements of cryptocurrency - Representative PBoC

China’s national digital currency should contain elements of cryptocurrency – Representative PBoC

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Emitted by the central bank-issued digital currency (CBDC), which the People’s Bank of China (PBoC) can issue, must contain elements of cryptocurrency. This was stated by Yao Qian – director of the laboratory of the study of digital currencies PBoC.

In his opinion, the Central Bank’s currency can provide its users with a certain degree of anonymity, which will make it more competitive, while at the same time noting that its emission must necessarily be centralized.

“At the current stage, CBDC can focus primarily on the digitization of Fiat. However, in the future it will inevitably be endowed with new features. The approach by which the CBDC will simply mimic the fiat currency can undermine its competitiveness in the long term,” he added.

As technologies that the Central Bank of China can borrow from the cryptocurrency, Qian calls a double-key mechanism that can be used by both customers and banks – a similar concept of private and public keys is used by most crypts.

In addition, in his opinion, the digital currency should be endowed with a certain degree of anonymity, which will make it possible to secure users when making transactions.

“Anonymous means of external communication and a real name on the inside,” Qian explained.

Recall that previously an official from the Chinese Securities Commission said that the blockсhain better copes with the tasks assigned to him, when certain of its elements are centralized.

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