The Chinese shares of the Fintech companies have started to take theirs uptrend: this happened before the official launch of the currency of the People's Bank of China (PBoC).
It is believed that the CBDC digital currency can offer attractive security and payment services.
The People's Bank of China CBDC currency is coming
While Facebook is trying to do everything possible to ensure proper regulatory approval before the launch of Pound, CBDC digital currency People's Bank of China (PBoC) is much closer to the official launch.
The wait for the launch of the Chinese stablecoin has led to an increase in the price of the securities of the Fintech companies.
According to a report published by Reuters, the Fintech index China Securities Index Co. (CSI) recorded gains of more than 50%, guaranteeing higher growth than expected.
Beijing Certificate Authority Co Ltd. it is one of the best so far. The company, which offers services related to electronic authentication, grew by almost 200% in 2019 alone and set a new record in September.
Another surge was recorded by the largest security company, 360 Security Technology Inc. (SJEC): the company recorded an increase of over 50%.
In August, the deputy director of the payment division of the People's Bank of China (PBoC), Mu Changchun revealed that the central bank's digital currency (CBDC) is ready to be launched after five years of development.
People's Bank of China: everything is ready for the launch of the CBDC digital currency
Changchun revealed in advance that the digital currency will not adopt the blockchain technology.
The implementation of the blockchain would have adversely affected the efficiency of the digital currency.
The CBDC digital asset will operate on a two-tier system.
The issue, distribution and redemption will be done through the country's commercial banks.
The currency will be a stablecoin supported by legal tender Chinese Renminbi.
The CBDC stablecoin will also be easily accessible by Chinese people who do not have traditional bank accounts.
The system will also be able to handle up to 300.000 transactions per second: this result is almost impossible if resorting to blockchain technology.
Although China continues to oppose and look suspiciously at the cryptocurrency sector, this country has a major impact on trade volume and mining.
