China is one step closer to launching digital renminbi thanks to Alipay

The People's Bank of China, with the support of the payment company Alipay, has completed work on basic functionalitydigital currency and now has focused on preparing laws to regulate its circulation. It is reported by the Global Times with reference to its sources.

Indirectly, the transfer of the project to a new stage is indicated by Alipay's registration of five patents that address issues of circulation, payments and the issue of the digital renminbi.

According to the 8btc portal, one of the patents states that the central bank's digital payment system (DC / EP) does not rely on the blockchain, but has a traceability function based on it.

Emission Control System for DC / EP Operatorswill be built on the equipment of the regulator, which will include primary encryption devices. Blockchain-based cryptocurrency access nodes will be public or semi-public.

Another feature of DC / EP will be “end-to-end oversight,” which will limit or completely exclude an account in case of detection of illegal activities.

To carry out anonymous transactions, Alipay experts suggested using a dynamically updated password, and authorizing using a mobile phone number or email address.

The development of the digital renminbi has been underway since 2014 and is at the final stage, although the exact launch date remains unknown, including due to the coronavirus pandemic.

Cao Yan, Deputy Director of the InstituteBlockchain's leading research at the Yangtze Delta Institute of Tsinghua University, believes that Chinese authorities will be able to use DC / EP in the near future.

“If we consider the option of lowering the interest rate below zero, then the digital yuan, and not its fiat version, will achieve the implementation of monetary policy”, - the Global Times interlocutor noted.

Recall that Deutsche Bank analysts believe that the digital yuan will undermine the primacy of the dollar in the global financial market.