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- A Chinese media group InterChain Pulse currently analyzed this kind of asset and came to the conclusion that, for example, the People’s Bank of China (PBoC) and Bank of England (BoE) digital coins would vary from each other.
- China is working on digitizing the currency renminbi, while the UK is preparing to build a competitive payment system.
- China’s digital coin will fulfill the standards of AML and PBoC’s own privacy policies. One of the most important resemblances of the coins is that they will not be built on blockchain technology.
Central bank digital currency (CBDC), also known as digital fiat currency, is the digital form of fiat money. Looking at its development, it is clear that digital coins from various countries will neither look alike nor function the same.
The (PBoC) and (BoE) digital coins would vary from each other
A Chinese media group InterChain Pulse currently analyzed this kind of asset and came to the conclusion that, for example, the People’s Bank of China (PBoC) and Bank of England (BoE) digital coins would vary from each other.
By examining a March paper by the Bank of England, a financial institution truly considers the pros and cons of a CBDC denominated in pounds sterling. The PBoC has also studied the requirements of CBDC.
InterChain equated the provisions mentioned in the bank’s report with those of PBoC and concluded that the two have a major difference in their structure.
For example, in China, the decision pertaining to CBDC issues is done by a central bank, while the UK will envoy such responsibility to the parliament. China is working on digitizing the currency renminbi, while the UK is preparing to build a competitive payment system.
To verify transactions, the UK aims to use smart contract, moreover, the PBoC will not support this type of transaction. The UK digital coin will mandate the provision of AML/CTF and data protection standards (GDPL).
The coins will not be based on blockchain technology
China’s digital coin will fulfill the standards of AML and PBoC’s own privacy policies. One of the most important resemblances of these coins is that they will not be built on blockchain technology.
Both BoE and PBoC are working on the network that aims at high transaction rates and neither of these networks will identify any digital currencies.
