Many rumors have been recently swirling around the digital yuan that aims to establish a digital payment infrastructure, but it seems that the digital yuan could come to light soon to become the first state-backed cryptocurrency.
China has finished the backend architecture development of People’s Bank of China digital currency (CBDC), said former vice-chair of the PBOC’s National Council for Social Security Fund, Wang Zhongmin.
Meanwhile, the CBDC is in an advanced phase as China is conducting tests, with the help of Alibaba, Tencent, Huawei, and China Merchants Bank, while officials are drafting legal aspects that should facilitate the kick off and operation of the virtual currency.
The current Covid-19 pandemic has boosted interest in cryptocurrencies, especially projects related to payment infrastructure, as China is looking forward to rivaling Facebook Libra, Zhongmin mentioned.
“I believe when it does come, it’s going to be one of the first, of not the first, real CBDC with a real use case globally,” Glenn Woo, Ledger Vault’s head of the Asia-Pacific region, predicted earlier this month.
There could be early trials with giant companies such as McDonalds and Starbucks that would enlarge the scope of the CBDC usage.
Latest news signaled that both Italy and Singapore are racing with China to embrace the central bank digital currency.
The Bitcoin, the leading cryptocurrency in terms of market capitalization, is currently trading 1 percent up at $9,456, where the $9,500 still represents a key resistance area.
It is worth mentioning that the Bitcoin registered a low of $4,106.98 on March 13, but it rose robustly until it touched a high of $10,199.56 on June 1, according to CoinMarketCap.
With BTC dominance of 64.7 percent, the Bitcoin remains at the top of the crypto market, but the dominance rate retreated from 69.9 percent recorded in September last year.
While the BTC has the
highest market capitalization of $173.7 billion, the stable Tether still holds
the largest 24-hour trading volume worth $20.5 billion.