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China announces wallet specifications for digital yuan

During the XIII Lujiazui Forum in Shanghai, Mu Changchun, director of the Research Institute of Digital Currencies of the People’s Bank of China, revealed several specifications that the wallets will have to be used with the digital currency of the central bank of the Asian country (CBDC ).

One of the specifications presented by the Chinese official has to do with anonymity and payment limits with the digital yuan, as the currency is also known, according to Forkast News.

Changchun said that there will be public and private wallets, which may include sub-wallets authorized by the user, although he did not clarify whether they will be supplied by the public administration or a private company.

The level of anonymity of the wallets will be related to the payment limit. The wallet with the highest level of anonymity, you only need a mobile phone number to activate, it has a single payment limit of 2,000 yuan (USD 300), a daily accumulated payment limit of 5,000 yuan (USD 780) and a Balance limit of 10,000 yuan (USD 1,560), but Changchun did not give details of how long the limit will be allowed.

China announces wallet specifications for digital yuan
The sub-purses for companies and institutions will have functions such as the collection and distribution of the digital yuan. Composition by CriptoNoticias. rawpixel / freepik.com; johan10 / elements.envato.com; wirestock / freepik.com; vadymvdrobot / elements.envato.com.

Users who want to have a greater amount of digital yuan, must verify the wallet with their identification document and link it to a bank account. In this case, there will be a one-time payment limit of 50,000 yuan (US $ 7,800), the daily accumulated payment limit of 100,000 yuan (US $ 15,600), and a balance limit of 500,000 yuan (US $ 78,000).

Last March, CriptoNoticias reported that the same Chinese official left It is clear that central bank digital currencies are not allowed to be completely anonymous, in order to comply with international regulations against money laundering and terrorist financing.

Sub-purses for individuals and companies

During the forum, Changchun also talked about another of the specifications and that is that there will be different wallets for individuals, companies or institutions.

According to other local media, individuals may open several sub-purses, in which limits of pa go and greater privacy protection.

With regard to sub-purses for companies and institutions, these may perform functions such as collection and distribution of funds, accounting and financial management.

Hot and cold wallets

The representative of the Chinese central bank also stated that they will enable two types of portfolios: cold and hot. However, it is not clear if these will be sold by the State itself, nor did he explain how their distribution would be.

The cold wallets will have integrated circuit cards and portable devices, said Changchun. It should be remembered that these types of wallets are hardware devices that protect the private keys offline (without an internet connection) that allow the movement of funds housed in addresses associated with them.

While hot wallets will have access to tools such as mobile payment applications. Unlike the cold ones, these wallets are connected to the internet all the time and allow the immediate availability of funds.

In that sense, Changchun indicated that the cold wallets will have the medical information of las, can also facilitate travel under the prevention and control of the pandemic.

Parallel to the announcements made by the official of the Central Bank of China about the wallets for the digital yuan, it was announced , which the financial institution itself, successfully completed the first on-chain salary payments with the digital yuan in the country. The tests are conducted in the Xiong’an region located southwest of Beijing.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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