As major central bank digital currency (CBDC) projects develop chop-chop, it is condign articulate that not all digital coins will look, or even function the same manner.

A recent analysis by Chinese financial media grouping InterChain Pulse reveals that ii of the most visible such projects — those of the Banking company of England (BoE) and the People'due south Bank of China (PBoC) — may exist more than dissimilar than they are alike.

InterChain Pulse cited BoE'south discussion newspaper released earlier this calendar month, where the financial institution seriously weighed the pros and cons of issuing a CBDC denominated in pounds sterling.

InterChain compared the provisions set forth in the banking concern'south report with those of the PBoC and concluded that the 2 have pregnant differences in their design.

Unlike China, where the central bank will be the issuing authority of the CBDC, Great U.k. has assigned the issuance of its CBDC to the parliament. Moreover, China is working on the digitization of its national currency, the yuan, while United kingdom is planning to create a competitive payment system.

Compared with the digital currency of the PBoC, some other significant difference is the awarding of smart contracts to ensure transactions. The Chinese primal bank's digital currency currently does not support this blazon of operation.

The BoE's CBDC will comply with anti-money laundering (AML) provisions, the financing of terrorism and sanctions procedures, and be uniform with the General Information Protection Legislation.

The PBoC'south CBDC must comply with the AML provisions and the banking company'southward ain privacy rules.

InterChain Pulse noted some similarities betwixt the two projects, the virtually notable existence that neither will be based on distributed ledger applied science. As both volition be used for transactions, BoE and PBoC are developing networks that concentrate on supporting a very high transaction frequency.

Additionally, InterChain Pulse states that neither network volition recognize a private digital currency.

Recent patents shed light on Mainland china's digital yuan

As Cointelegraph recently reported, patents from Chinese payments platform Alipay — which is working on the CBDC projection — accept revealed some details near the digital yuan's features.

Among them, Alipay itself will be a secondary issuer of the currency, while wallet functionality can be adamant by beliefs and personal data.