The People's Bank of China can launch digital currency (CBDC) based on the country's existing payment foundation. So says Glen Wu, head of the Ledger Vault office in the Asia-Pacific region.
He emphasized that the Chinese authorities could take such a step so that people would not notice the transition of the economic sector to a new instrument. The participation of large companies in testing CBDC suggests that Halyk Bank expects to present its cryptocurrency as soon as possible and expand the geography of its use in the future.
Currently, up to 96% of retail transactions in the Middle Kingdom are concocted by WeChat Pay and AliPay payment systems.
The Central Bank token is likely to be integrated into an existing transaction processing system. Only minimal changes will be made, but the regulator will retain control over the movement of funds.
Trending: WWE Is Launching The UnderTaker NFTs
Glenn Wu added: "From a retail consumer perspective, you may not notice the change."
For example, a person uses WeChat Pay when paying for goods and services. He will continue to use the same application, only payments will be made using cryptocurrency.
According to Wu, the Chinese authorities want to use the CBDC to minimize the role of the US dollar and stimulate settlements in RMB. The digital version of the national currency will be used in international trading operations, in which companies and banks from the Middle Kingdom take part.