A new research report from crypto exchange Binance says China's digital currency will most likely be a two-tiered system replacing notes and coins in circulation.
The report claims that the cryptocurrency of the People's Bank of China (NBK) will be backed 1:1 by renminbi fiat. State cryptocurrency will operate on a two-tier system with the bank, commercial banks, and other market participants.
The first tier will connect the PBOC with commercial banks for currency issuance and redemption. The second layer will connect those commercial banks with a more significant retail market. According to Binance, a technical roadmap – including the questioned use of blockchain technology – has yet to be published.
Binance claims the PBOC's system could allow fund transfers without the need for a bank account. The two-tiered system could help the PBOC process as many as 300,000 transactions per second, currently not possible with blockchain technology.
Under the Bank of International Settlements' money taxonomy, the PBOC's new digital currency could cover "general-purpose, account-based" money and central bank digital tokens, which in turn have their general purpose and wholesale categories.
Technical analysis of Bitcoin (BTC):
Over the past day, bitcoin reached the mark of $9,600. Now, the price of bitcoin is $9,540. We expect a further price increase, at least to the resistance level of $9,700. The nearest resistance levels are $9,700, $9,930. The nearest support levels are $9,320, $8,750.
Technical analysis of Ethereum (ETH):
Over the past day, ethereum reached the mark of $170. Now, the price of ethereum is $168. We expect a further price increase, at least to the resistance level of $173. The nearest resistance levels are $172, $176. The nearest support levels are $168, $150.
Technical analysis of Ripple (XRP):
Over the past day, ripple broke through the resistance level of $0.2560 and reached the next resistance level of $0.2580. We expect a decrease in price. The nearest resistance levels are $0.2560, $0.2580. The nearest support levels are $0.2490, $0.2440, $0.2380.