Binance Research Arm: China’s Crypto Will Operate As Two-Tier System

Binance Research arm has conducted a report that looks into the potential characteristics that can be expected when China imposes their own digital currency into the market so let’s find out more in the altcoin news below.

Some members of the government in China and central bank have indicated that the new digital currency will utilize a new hybrid system that will also include new blockchain features and other operating technologies. The Binance research arm also explained its expectations for the digital legal tender that was proposed by the People’s Bank of China.

Some comments from the officials have revealed that the Chinese government aims to use the digital currency in order to create a few improvements in the monetary policies around the country. The asset has been referred to as one of the Chinese Central Bank digital Currency and the People’s Bank of China has even made plans which suggest that the primary issuance could precede the one of Libra’s offering. These events are very important because the Chinese officials are aiming to implement digital currency systems at a time when the bankers around the world criticize cryptocurrency and Facebook’s goals of launching its own cryptocurrency.

The official plans for the currency to be backed by the fiat reserves is an attempt to raise the legitimacy of the central bank digital currencies. The blockchain technology will also be used in order to prepare the customers with additional encryption and other features. Other comments from the entities related to the People’s Bank of China have provided some more details and the descriptions from the Binance Research that includes a two-tier system that will be used for redemptions and issuances: the first layer that states that the people’s Bank of China will issue and redeem the CBDC via the use of commercial banks and the second layer where it says that the commercial banks will become responsible for redistributing CBDC to consumer users in the retail market.

Some crypto analysts believe that the CBDC will not be real cryptocurrency because it mainly relies on the fiat-backed economic systems and other observers suggest that China designed them just so they will be used as a mechanism to exercise control on the markets are previously reported in the best cryptocurrency news sites.