After five years of extensive research, the People’s Bank of China (PBoC) has announced that its digital currency “can now be said to be ready.”
PBoC Deputy Director Mu Changchun, who also states that the digital currency adopts Blockchain Architecture, made the announcement at the China Finance 40 Forum on August 10.
The digital currency will operate on a two-tier system in order to cater to the nations “complex economy with a vast territory and a large population,” with the PBoC on the main higher level of operation and commercial banks operating underneath.
This means that the system will convert cryptocurrency to fiat, which the banks can then hand out to the respected recipients.
This decision has been made due to the difficulty of running the digital currency on a pure Blockchain architecture due to the size of the country and retailers requiring high concurrency performance.
Changchun has stated that the digital currency has been specifically designed to be suitable for “small-scale retail high-frequency business scenarios.”
The decision has been made from China to release their own digital currency in order to get one step above the Unites States amidst the current trade war.
Anthony Pompliano, known Bitcoin (BTC) Bull and founder of Morgan Creek Digital, has regarded China as a country that supports innovation, while USA on the other hand has been seen in a negative light for no the doing same.
This new development in such an influential and highly populated country will send all Cryptocurrencies even further into the mainstream.