Reported by the Shanghai Securities News on August 10, Mu Changchun – deputy director of the PBoC – revealed that their research team has been working on a crypto project for half a decade, and has succeeded in creating a blockchain-based, prototype version of the digital coin.
Mu claimed that coming up with a crypto coins that runs on pure blockchain architecture is not an easy task, especially for a mega nation such as China, since the concurrency performance needs to be high enough to meet the demands from Chinese retailers.
The new cryptocurrency will be employing a “two-level” operating framework, in an attempt to be suitable for a “complex economy with a vast territory and a large population,” with PBoC on the upper tier, and commercial banks on a secondary one. Per Wu, this will provide a boost for accessibility, consequently increase users’ adoption rates, as well as improve innovation of commercial organizations.
As disclosed by the PBoC official, the digital coin was specifically created to cater to the needs of “small-scale retail high-frequency business scenarios.”