CBDC: China is testing its digital currency on a new platform-with 500 million users

#centralbank #digitalcurrency #centralbankdigitalcurrency #cryptocurrency #cbdc

Chinese ride-hailing giant Didi Chuxing Technology Co. will test a pilot version of China’s digital currency, according to a company statement on Wednesday that announced a “strategic partnership” with the central bank’s Digital Currency Research Institute.

The People’s Bank of China (PBOC), the country’s central bank, has been researching a national digital currency known as Digital Currency Electronic Payment (DCEP) since 2014 and ramped up its efforts to roll it out last year.

The launch date and other specifics of the Didi project are not publicly known.

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China is testing its digital currency on a new platform-with 500 million users

It will be the largest rollout yet of the central bank's digital yuan.

Bank of Japan research: offline payments for central bank digital currency - Ledger Insights - enterprise blockchain

#CBDC #centralbank #digitalcurrency #centralbankdigitalcurrency #Japan

The central bank of Japan has announced that it will begin experimenting with a central bank digital currency (CBDC) to check its feasibility from a technical perspective. The central bank expressed its interest in creating a digital version of its national currency yen.

This is the first time that the Bank of Japan as revealed that it would commence a Proof of Concept process with the digital yen, but the bank is yet to reveal a timetable.

The Bank of Japan (BoJ) also published a research paper on central bank digital currency (CBDC). Although it’s a research paper, the Bank recognizes there will be a growing need for a digital currency with the steady decline in the use of cash. However, in Japan, four out of five retail transactions still use cash.

The Bank considers two critical features of a CBDC are universal access and resilience. That means using the digital yen without electricity, especially given Japan’s recent earthquakes and power outages.

The paper very briefly explored the potential for a centralized versus a decentralized CBDC and stated that potentially both could be made capable for offline use.

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Bank of Japan research: offline payments for central bank digital currency - Ledger Insights - enterprise blockchain

Yesterday the Bank of Japan (BoJ) published a research paper on central bank digital currency (CBDC). As with previous papers, the Bank explored a specific topic, in this case, the potential offline use of a digital yen. Although it's a research paper, the Bank recognizes there will be a growing need for a digital currency with the ...

Central Bank Digital Currency: Lithuania to Launch CBDC This Month - Intended for Collection Purposes, Not Trade

#CBDC #centralbankdigitalcurrency #centralbank #digitalcurrency

The Bank of Lithuania, or BoL, will launch a pre-sale of its Central Bank Digital Currency (CBDC), dubbed LBCOIN, on July 9, a representative for the central bank told Cointelegraph. The coin itself will be issued and sold on July 23.

While LBCOIN is technically a CBDC based on the NEM blockchain and issued by the central bank of Lithuania, the financial institution prefers to call it “the world’s first blockchain-based digital collector coin”.

Indeed, LBCOINs will be issued for collectible purposes. This is happening as part of the country’s larger research on blockchain and its capabilities, Pavel Lipnevič, LBCOIN project manager, told Cointelegraph.

The BoL intends to sell 24,000 LBCOINs. They will come in packs of six at a cost of 99 euros. Each token will feature a portrait of one of the 20 Lithuanian historical figures who signed the country’s declaration of independence in 1918. These individuals are divided into six categories: priests, presidents, diplomats, industrialists, academics, and municipal servants.

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Lithuania to Launch CBDC This Month - Intended for Collection Purposes, Not Trade

The Bank of Lithuania, or BoL, will launch a pre-sale of its CBDC, dubbed LBCOIN, on July 9, a representative for the central bank told Cointelegraph. The coin itself will be issued and sold on July 23.

Bank of Canada: Designing a Central Bank Digital Currency (CBDC) for universal access

#CBDC #centralbankdigitalcurrency #UAD #universalaccessdevice

Key design matrix given by Bank of Canada on Central Bank Digital Currency (CBDC) based on universal access are

1. A CBDC should be as accessible as cash - 

A CBDC is a digital product that can be designed to include many of the attributes of cash (e.g., ease of use, portability, offline function).

2 Multiple formats for a CBDC can embody the design principles of universal access - 

The Bank is exploring multiple formats for a CBDC, including conventional online and mobile technologies, as well as custom devices and deviceless solutions.

3. A CBDC could be used through a dedicated universal access device (UAD) -

 One potential concept the Bank is investigating is a custom device that is engineered for universal access while securely storing and transferring a CBDC. The device could incorporate attributes of cash and take advantage of specialized technologies. Such a device should be manufactured at a low cost and issued by the Bank to ensure maximum inclusion.

4. A UAD could be resilient in ways that a smartphone is not - 

A UAD could embed a local, secure store of value, be network-independent and operate for long periods on a local power source.

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Designing a CBDC for universal access

If the Bank of Canada issues a central bank digital currency, the technology should be designed for universal access.

People's Bank of China is ahead in implementing Central Bank Digital Currency (CBDC)

China leads the world in the development of national digital currencies. While other central banks are talking about central bank digital currencies (CBDC), the People’s Bank of China (PBoC) is already trialling its toolkit. Just recently, screenshots emerged of a “digital yuan” interface being piloted at the Agricultural Bank of China (ABC), one of four state-owned banking giants.

That PBoC is first to the CBDC starting line is not surprising. It has been working on the project for six years. Meanwhile, China’s government has made blockchain a national priority in several directions, including the recently launched Blockchain Services Network (BSN), which is now being piloted in Chinese cities and along its “Digital Silk Road” trade routes.

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CoinDesk 50: How the People's Bank of China Became a CBDC Leader - CoinDesk

China leads the world in the development of national digital currencies. While other central banks are talking about central bank digital currencies (CBDC), the People's Bank of China (PBoC) is already trialling its toolkit. Just recently, screenshots emerged of a "digital yuan" interface being piloted at the Agricultural Bank of China (ABC), one of four state-owned banking giants.