After seven year of hardwork on the full analysis on blockchain technology regarding development of Central Bank Digital Currency, People Bank Of China released their first e-Whitepaper of Digital Yuan.
On 15 July, People Bank of China released 15 pages e-Whitepaper of Digital Yuan. Through their white paper , they tried to explain many types of definitions & terms that they used for the development of Digital Yuan. And also they clearly explained how digital Yuan will work from initial phase to high level. They tried to explain the vision of Digital Yuan and its use purpose in practical life.
According to WhitePaper, they are only going to put their Yuan on a digital platform (based on blockchain technology). The existing fiat currency financial platforms which are supporting Yuan in digital & cash form, will keep their work in the same way along with digital Yuan.
People of China will be able to use the Digital Yuan for all types of payment purposes. And also citizens of China will no longer remain restricted to bank services, they can independently use e-CNY wallets.
The people who will visit in China ( foreigners) will get a temporary wallet of Digital Yuan. It will help any outsider to buy things easily in China without any boundation of the region.
People bank of china claims that in the present time lots of laws and regulations are and we have to follow to provide better ecosystem & environment for their citizens. But with the existing fiat currency which are available to use in cash form & digital form both are not able to help at that level where we need support. Because of the availabilityof Yuan in the cash form, it is very tough to regulate money flow in criminal activities (such as tele-fraud, Internet gambling, money laundering, and tax evasion). That is why they are adopting this approach of digital Yuan.
According to WhitePaper, they will allow only authorised institutions to distribute digital Yuan like commercial banks, and manage e-CNY through its whole life cycle.