There will be purses for private users, companies, and institutions. The purses will have a health code.

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 Asian country’s central bank (CBDC).

One of the specifications that the Chinese official presented shares similarities 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 might add sub-wallets authorized by the user, although he did not clarify whether they will be provided by the public administration or a private company.

The level of anonymity of the wallets will relate to the payment limit. The wallet with the highest level of anonymity, will 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 ($ 1,560), but Changchun did not give further details of how long the limit can be held.

Users who desire to have a greater amount of digital yuan, must set the wallet under verification 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 ($ 7,800), the daily accumulated payment limit of 100,000 yuan ($ 15,600), and a balance limit of 500,000 yuan ($ 78,000).

Last March, the same Chinese official clarified that central bank digital currencies do not have permission to be completely anonymous, with the aim of complying 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 which says that there will be different wallets for individuals, companies or institutions.

According to another local medium, private individuals might open several sub-wallets, in which payment limits and greater privacy protection could meet a proper establishment.

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

There are Hot and Cold Wallets

The representative of the Chinese central bank also stated that they will enable two types of portfolios: hot and cold. However, it is still unclear whether these will be sold by the State itself, nor did it explain how their distribution would happen.

The cold wallets will feature integrated circuit cards and wearable devices, Changchun said. It is important to remember that these kinds of wallets are hardware devices that protect the private keys offline (without an internet connection) that grant the safe movement of funds housed in addresses associated with them.

While the hot wallets, they will have access to tools like mobile payment applications. Unlike the cold ones, these wallets are in connection with the internet all the time and allow the immediate availability of funds.

By: Jenson Nuñez

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