Smart contracts, $ 5.4 billion settled, large transfers traced – bitcoin news

The working group involved in digital yuan research and development for the People’s Bank of China (PBOC) published an article describing the progress of digital currency. The PBOC launched a task force dedicated to creating a digital yuan in 2014, and the recently released document is the project’s first white paper released in seven years.

The Chinese digital yuan is no different from the physical RMB

After the creation of Bitcoin and a few years after the cryptocurrency economy began to gain recognition, 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 authorized the Digital Currency Task Force to release a white paper that details the current progress of the CBDC.

The white paper titled “Progress of E-CNY Research and Development in China” notes that throughout history, “the shape of money has changed.” The PBOC Digital Currency Working Group points out that the digital yuan, often referred to as “e-CNY,” is no different from the physical form of currency used by the Chinese today.

“The issuance and circulation of the e-CNY is identical to the physical RMB, while the value of the former is transferred in digital form,” notes the white paper. “Third, e-CNY is the central bank’s liability to the public. Backed by a sovereign credit, the e-CNY is legal tender.

The e-CNY whitepaper also contains a number of stats and features that make it different from bitcoin (BTC) and stablecoins. The newspaper claims that more than 20 million digital yuan wallets have been created to date, and $ 5.4 billion or 35.5 billion yuan has been settled on the e-CNY network.

In addition to the growth of wallets and settlement seen on the CBDC network, the progress report notes that the digital yuan protocol has built-in programmability. The task force’s study alludes to the use of smart contracts and decision-making transactions.

“[The] e-CNY achieves programmability by deploying smart contracts that do not alter its monetary functions. Under the principle of security and compliance, this functionality allows self-executing payments according to predefined conditions or terms agreed between the two parties, in order to facilitate the innovation of the business model. the white paper highlights.

Anonymity for low value and traceable for high value

Meanwhile, the digital yuan also supports interoperability with traditional electronic payment systems. The document further details that in addition to the 20 million yuan digital wallets, 3.5 business wallets were also deployed.

The white paper explains that the digital yuan is an “interest-free accumulation”, which means that it is simply a substitute for the money supply that “bears and pays no interest”. The document also discusses anonymity and privacy and points out that the network has some elements of privacy, but it 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 information and privacy, “notes the white paper. “It aims to meet the public demand for low value anonymous payment services based on the risk characteristics and information processing logic of [the] current electronic payment system. The PBOC Digital Currency Progress Report adds:

At the same time, it is necessary to guard against the misuse of the e-CNY in illegal and criminal activities, such as telefraud, Internet gambling, money laundering and tax evasion by ensuring that transactions comply with AML / CFT requirements.

What do you think of the recently released e-CNY and PBOC white paper? Let us know what you think of this topic in the comments section below.

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