China’s central bank is reportedly one step closer to issuing its much-awaited digital currency.
According to the Global Times, the People’s Bank of China (PBOC) has finished work with the basic functions of its central bank digital currency (CBDC). The bank is now drafting laws to pave the way for its launch, “industry insiders” said.
One of these insiders told the news outlet that Alipay’s recent patents are related to the basic functions of the CBDC, including circulation and issuance.
“Judging from the patents, the first step of technological development has been basically completed,” the insider said.
However, the same insider added that the next steps would take quite a bit of time, noting that creating the relevant legislation and supervision guidance would make a launch date uncertain.
As we’ve previously reported, the digital yuan was “ready for testing” late last year, with the PBOC teaming up with seven state-backed firms to hold trials.