According to Coindesk, a hardware wallet may be released from the People’s Bank of China (PBOC) for mass use of the state cryptocurrency.
Recall that over the weekend, the Chinese bank China Construction Bank (CCB) opened access to the wallet for the digital yuan to customers, but after a while turned off this function. To date, registered digital yuan wallets have already been liquidated and funds returned to CER clients’ bank accounts.
According to the document, the hardware wallet for the Chinese government stablecoin is presented as a physical medium, which is activated at the user’s request at the bank or remotely. The hardware wallet will be monitored by regulators and will eliminate the element of anonymity. To activate it, users will need to provide personal information and a phone number. A hardware wallet can be used to make payments, make a deposit, withdraw funds, and conduct transactions between wallets.
In addition, Coindesk found information in the document about a four-tier system that will determine how much digital yuan customers can spend. For example, a user can deposit up to 10,000 yuan to a second-tier wallet. More than RMB 5,000 cannot be sent in a single transaction. The cost of such a hardware wallet should not exceed 10,000 yuan per day and 300,000 yuan per year. Tier 3 and 4 wallets are subject to stricter restrictions, and tier 1 wallets are not listed.
The Central Bank of China is actively exploring the use of the digital yuan with Chinese banks. However, according to eToro platform analyst Nemo Qin, the NBK’s stablecoin will not have a strong impact on the cryptocurrency industry due to the high level of centralization.