As central banks around the world reduce interest rates to zero and take aggressive action against the economic recession due to the coronavirus pandemic, the Chinese central bank is speeding up its plan to introduce the digital currency in the central bank (CBDC).
According to a report by the Global Times on 24th March China is one step closer to issuing its CBDC. The Bank of China has completed the development of the basic functions of the official digital currency and is currently preparing draft laws that will help in its implementation.
The Global Times also mentioned several private companies based in Shenzhen, including Alibaba, Tencent, Huawei and China Merchants Bank, which participated in the development of the digital currency.
Cao Yan, Managing Director of the Digital Renaissance Foundation, told the press agency that these private companies were selected based on their rich blockchain and experience with third-party payments.
China has used its advanced mobile payment companies
Alibaba's Alipay and Tencent's WeChat Pay together have more than 1.7 billion active accounts across China - 300 million more than the country's population. They have combined social media, e-commerce and payments to create an advanced online trading infrastructure.
Alipay reportedly announced five patents on China's official digital currency between January 21 and March 17.
The patents cover several areas of the digital currency, including issuance, recording of transactions, digital wallets, anonymous commercial support and assistance in supervising and handling illegal accounts, industry media reported.
