The Central Bank of China has completed the development of the basic functionality of the “digital renminbi”

The People’s Bank of China announced that it has completed the development of the main function of the national cryptocurrency and is now focused on creating a regulatory framework that will allow regulating the new asset and putting it into circulation. It is worth noting that the regulator, in preparation for the launch of CBDC, cooperates with private large companies of the country (for example, Alibaba, Tencent, Huawei and China Merchants Bank).

The digital asset is perceived as the most convenient tool for transferring the policy of the country’s main financial regulator with zero and negative interest rates to commercial banks. “If China decides to lower its key rate to a negative level, digital currency will contribute to that,” said Cao Yang, a spokeswoman for Tsinghua University’s Blockchain Advanced Research Institute.

A division of the Chinese technology firm Alibaba, writes the Global Times, has already published five patents related to China’s official digital currency from January 21 to March 17 this year. They include issues of issuance, transaction records, digital wallets, anonymous trading support. “Judging by the patents, the first stage of technological development can basically be considered completed,” the publication refers to a source familiar with the situation.