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Binance Research, the research arm of the main cryptography platform Binance, said no bank account would be needed to use the central bank's digital currency (CBDC).
Loose coupling and anonymity
Binance Research presented its findings on August 28th. According to the report, the CBDC in China will be transferable without a bank due to its loosely coupled design. As the researchers explained, a loosely coupled design refers to a system of components that do not all depend on each other.
The result is that users will be able to transfer the CBDC between them without the need for a bank account. The objectives of this design are to give the user a degree of anonymity, promote a turnover rate of CBDC staff equivalent to that of cash and stimulate the circulation and internationalization of the renminbi.
Smart contracts?
The report also states that the People's Bank of China (PBoC) plans to use smart contracts in its infrastructure, but is reluctant to implement anything that goes beyond "basic monetary requirements" – a term that has not been defined yet.
According to the report, the PBoC is concerned that if it implements smart contracts that add value to the CBDC, its offer would become more of a security. This could reduce the usability of the digital asset and undermine the PBoC's goal of internationalizing the RMB.
No launch project in November
As previously reported by Cointelegraph, the Global Times said the PBoC had not planned to release its CBDC in November. The PBoC responded to claims that it planned to launch its next asset in November, calling the rumors of a launch a "misleading speculation".
An anonymous source previously told Forbes that the technology behind its CBDC was complete and could potentially arrive as early as Nov. 11.
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