China is closer to launching digital yuan thanks to Alipay

by in Cryptocurrency News

Digital Yuan

The People's Bank of China, with the support of the payment company Alipay, has finished work on the basic functionality of the digital currency and has now focused on preparing laws to regulate its circulation.

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 yuan.

One of the patents states that the central bank's digital payment system (DC / EP) does not rely on blockchain, but has traceability based on it.

The communication system of DC/EP operators with the right to issue will 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.

Trending: MetaMask announces integration with Apple Pay

Another feature of DC/EP will be “end-to-end oversight,” which will limit or completely exclude an account in case of the 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 creation of the digital yuan has been underway since 2014 and is at the final stage, although the exact launch date remains unknown, including due to the coronavirus pandemic.

Trending: NFT Marketplace OpenSea Suffered a Data Breach

Cao Yan, deputy director of the Blockchain Advanced Research Institute at the Yangtze Institute of Tsinghua Yangtze Institute, believes that Chinese authorities will be able to take advantage of DC/EP soon.