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Report: No Bank Account Needed to Transfer China’s Upcoming CBDC

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Report: No Bank Account Needed to Transfer China’s Upcoming CBDC

Binance Research has reported that no bank account is needed to use China’s Central Bank Digital Currency (CBDC).

Loosely-coupled design

Binance Research posted their research Aug 28. The report stated that China’s CBDC will be transferable without a bank account due to its loosely coupled design.  A loosely coupled design is a system of components that do not depend on each other.


They also reported that users will be able to transfer the CBDC to one another without using a bank account. This design aims to provide a level of user anonymity. The goal to promote a CBDC turnover rate almost equal as cash to boost the circulation and internationalization of Renminbi.

Smart contracts

The report also mentioned that the People’s Bank of China (PBoC) is looking at utilizing smart contracts in its infrastructure. PBoC is still hesitant to implement anything that would provide functionality beyond “basic monetary requirements” — a term that has not been yet defined.

According to the report, PBoC is also concerned that if they implement smart contracts it may add additional value to the CBDC and “downgrade” this CBDC into some kind of a security. This could reduce the PBoC’s usability and prevent the goal of internationalizing the RMB.