Digital currency of China, CBDC, which will produce the people’s Bank in the country, according to Yao Qian (Yao Qian), head of research of the Central Bank in this area should include the elements of cryptocurrency.
In its latest report published by Chinese media on Tuesday Yicai, Yao explained his vision of a technological approach to the development of the CBDC.
In his view the increased privacy in transactions will help to give future currency of competitive advantage. However, he understands that the people’s Bank of China is likely to centralize its production.
“At this stage, the CBDC can basically focus on the digitalization of Fiat currencies. But in the future for CBDC inevitable need to integrate more functions. An approach that simply mimics the tough and digitizes Fiat currency, could undermine the competitive advantage of the CBDC in the long term,” said Yao Qian.
Comments of the Director of the laboratory reflect a new perspective of China’s Central Bank on this issue. Earlier this year, Vice-President of the people’s Bank of China Fan Yifei (Fan Yifei) said that the currency the Central Bank will be inherently different from the tokens of decentralized and centralized management and the issue will remain a priority of the highest level.
However, Yao is confident that in the long term, the Chinese CBDC still needs to include some key features of cryptocurrency. For example, he describes a scenario of using the mechanism of dual-key supported both clients and banks, which is similar to the concept of public and private keys used in most cryptocurrencies.
In addition, Yao suggested that some degree of anonymity will not hurt the Chinese CBDC, because according to him the Central Bank should consider the advantage of a more private environment transactions for a better user experience and protect privacy.
He described this as:
“Anonymous dev with a real name in the backend”.
It is possible that the Central Bank would support this view. At least previously, Fang argued that although CBDC can be anonymous from the perspective of payments between consumers, transparency will be vital in the system of emission the Central Bank.