China is one step closer to the launch of the digital Yuan. Today, the People's Bank of China (PBoC) has released a whitepaper of the CBDC.
The e-CNY whitepaper noted that the initiative began in 2014.According to the document, one of the main reasons behind the project's development was the creation of cryptocurrencies, which brought risks and challenges to the fin. system. The paper also mentioned the creation of stablecoins to solve the issue of price volatility.
However, the Central Bank mentioned that while some commercial establishments aim to launch global stablecoins, they include challenges for financial systems such as international capital flow management, payment, and clearing systems, etc.
Introducing the currency's framework and design, the whitepaper states that E-CNY has programmability from deploying smart contracts that don’t impair its monetary functions.
There was mentioned in the document that the smart contracts would help the CBDC to serve better as a currency.