Smart contracts, $ 5.4 billion processed, large transfers tracked – Bitcoin News
The working group involved in the research and development of the digital yuan for the People’s Bank of China (PBOC) has published a paper describing the progress of the digital currency. The PBOC initiated a task force in 2014 to create a digital yuan, and the recently released document is the project’s first white paper in seven years.
China’s digital yuan is no different from physical RMB
After the creation of Bitcoin and several years after the cryptocurrency economy was recognized, the PBOC was one of the first central banks to introduce the idea of creating a central bank digital currency (CBDC). China’s central bank recently allowed the working group on digital currencies to publish a white paper detailing the current progress of the CBDC.
The whitepaper, titled “Progress in Research and Development of E-CNY in China,” states that “the shape of the currency has evolved” throughout history. The PBOC’s Digital Currency Working Group emphasizes that the digital yuan, often referred to as “e-CNY”, is no different from the physical form of money used by the Chinese today.
“The issuance and distribution of e-CNY is identical to the physical RMB, while the value of the former is transmitted in digital form,” says the white paper. Third, e-CNY is the central bank’s debt to the public. The e-CNY is secured by government bonds and has the status of legal tender. “
The e-CNY whitepaper also contains a number of statistics and defining features that distinguish it from Bitcoin (BTC) and stablecoins. The newspaper claims that more than 20 million yuan digital wallets have been created to date and $ 5.4 billion or 35.5 billion yuan have been billed through the e-CNY network.
In addition to the growth of wallets and processing in the CBDC network, the progress report notes that the digital Yuan protocol has built-in programmability. The study by the working group alludes to the use of smart contracts and decision-based transactions.
“[The] e-CNY gains programmability through the use of smart contracts that do not affect its monetary functions. Under the premise of security and compliance, this function enables automatic payments according to predefined conditions or conditions agreed between two sides in order to facilitate the innovation of the business model. ”The highlights of the white paper.
Low value anonymity and traceable high value
Meanwhile, the digital yuan also supports interoperability with traditional electronic payment systems. The paper goes on to explain that in addition to the 20 million digital yuan wallets, 3.5 business wallets were also used.
The white paper explains that the digital yuan is “zero-interest”, which means that it is simply a substitute for the money supply that “bears no interest and pays no interest.” The paper also goes into anonymity and privacy, highlighting that the network has some elements of privacy, but also protects against illegal financial activity.
“[The] e-CNY follows the principle of ‘anonymity for low value and traceable for high value’ and attaches great importance to the protection of personal data and privacy, ”says the white paper. “It aims to meet public demand for anonymous low-value payment services based on the risk characteristics and information processing logic of the. to satisfy [the] up-to-date electronic payment system. “PBOC’s progress report on digital currency adds:
In the meantime, there is a need to prevent the misuse of e-CNY for illegal and criminal activities such as telefraud, internet gambling, money laundering and tax evasion by ensuring that the transactions comply with AML / CFT requirements.
What do you think of the e-CNY and the recently released PBOC whitepaper? Let us know what you think on this matter in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
source https://bidsfor.me/smart-contracts-5-4-billion-processed-large-transfers-tracked-bitcoin-news/
Comments
Post a Comment