China has completed the backend architecture development of China’s central bank digital currency (CBDC).
The announcement was made by the former vice-chair of the People’s Bank of China’s National Council for Social Security Fund, Wang Zhongmin.
Wang made the announcement during the online 2020 Fintech Forum organized by Tencent Fintech Research Institute and the Fintech 50 Forum in Beijing.
China is seeking to create a payment infrastructure in which these currencies can co-exist with sovereign digital currencies.
Wang said that such a system will create an environment in the digital currency space for healthier competition and cooperation.
China’s CBDC is currently in its testing phase, Wang said during the forum.
The country has also started drafting laws that will help the launch and implementation of its digital currency.
Chinese technology and payments giants such as Alibaba, Tencent, Huawei, and China Merchants Bank are believed to be working with the People’s Bank of China in development and testing.