People’s Bank of China Has Filed 84 Digital Payment Patents For CBDC’s: Report

According to the Chamber of Digital Commerce, China has filed 84 patents for the digital yuan, its new upcoming digital currency.

The patents date to 2017 and are credited to the People’s Bank of China’s (PBoC) Digital Currency Institute. They were filed to the Chinese Patent Office (SIPO) and indicate some important aspects like the one where the Chinese government is able to alter the currencies supply after some specific events like interest rates going up, or the one of integration with traditional bank accounts while the connection with digital currency chips cars or digital wallets is still possible.

The Chinese Government Will Track Down Transactions

The patent applications are related to the integration of the digital currency in the already existing banking infrastructure. This is what Mark Kaufman, the patent attorneys for Rimon Law and a former employee of the Chamber of Digital Commerce said about them:

“Virtually all of these patent applications relate to integrating a system of digital currency into the existing banking infrastructure.”

Meanwhile, the Chamber’s president, Perianne Boring, mentioned how a mechanism that’s able to stop the tracking of transaction by the Chinese government doesn’t exist yet.

Will Other Governments Take China’s Example?

In November 2019, Mu Changchun, the head of PBoC’s Digital Currency Institute, spoke at a Singapore conference and said:

“We are not seeking full control of the information of the general public.”

The newly filed patents come only to prove that the Chinese government is committed to issue a digital currency, which may convince other governments to take action in the same direction. For example, the Japanese government recently talked about China’s digital yuan and Facebook’s Libra, saying these should be combated with a digital currency released by Japan. Norihiro Nakayama, the foreign affairs parliamentary vice-president of Japan said,

“China is moving toward issuing digital yuan, so we’d like to propose measures to counter such attempts.”

Will the US Release Its Own Digital Currency?

There have been signs that the US may be considering issuing its own digital currency too, as Jerome Powell, the Federal Reserve Chairman, said on Tuesday that this matter needs to have an answer and that:

“We’re working hard on it.”

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Author: Oana Ularu

China’s Digital Currency Still has No Launch Date But Will Continue its Development in 2020

  • Research and development of digital yuan to continue in 2020 – says PBOC
  • The central bank said it made “smooth progress” on the digital currency in 2019
  • The step to create a digital currency is taken to offset perceived risks presented by Bitcoin and Libra

China’s central bank said on Sunday that it doesn’t have a launch date for its sovereign digital currency but will continue with its research and development, as per the local reports.

A report in August said the central bank-backed digital currency could be launched as early as November but that is long gone.

Last month, Mu Changchun, the official in charge of its development said the “top-level design, formulation, functional research and testing” had been completed.

The People’s Bank of China also shared during the annual work conference held last week that it made “smooth progress” on the digital currency in 2019.

In December, Caijing, a Chinese business magazine reported that the country’s four big state banks — Bank of China, Agricultural Bank of China, China Construction Bank, and Industrial and Commercial Bank of China — and three state-owned telecom firms are involved in its development.

Recently, Mu also said that the sovereign digital currency was intended as a replacement for cash and not designed for speculation.

PBOC has been one of the first central banks to promote the idea of a CBCD. Last year, after Facebook announced plans for its own digital currency Libra, the bank’s research institute stepped up its development. The officials came out to the public and shared aspects of this upcoming digital currency that they said has been ready after five years of research.

Sweden is also working on an e-Krona while Bank of Japan governor would conduct “technical and legal research” into digital currencies but has no plans to issue one because there was no demand.

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Author: AnTy

China’s Central Bank Digital Currency is “Digital Form of the Yuan” & “Not for Speculation”

  • Mu Changchun, central bank veteran in charge of the plan for virtual yuan says it will not need the backing of a basket of currencies
  • Chinese internet users unimpressed by no speculating on the virtual currency part

China’s new sovereign digital currency would not be open to speculation like other cryptocurrencies, said a Chinese central bank official on Saturday.

Mu Changchun, head of the People’s Bank of China’s digital currency research institute said it would be a “digital form of the yuan” that wouldn’t need the backing of a basket of fiat currency.

“The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies,” Mu said.

The central bank official said that the design, formulation, and functional research and testing of the Digital Currency Electronic Payment have been completed. The next step is to roll out the pilot programs before it is launched.

But Chinese internet users aren’t excited about the idea that there would be no speculating on the virtual currency.

“So there will be no fun in it,” one person commented. Another said on news portal Sina.com, “The digital currency is just another form of the yuan, but cryptocurrencies that use real blockchain technology can be treated like gold and silver.”

However, there is no time frame for introducing the central bank-backed digital currency as of yet.

Any Chinese bank or company hasn’t officially confirmed their participation in this digital currency plan either but earlier this month there have been reports that the big four state banks and three state-owned telecom companies are involved in the process.

Meanwhile, Beijing has been cracking down on trading of Bitcoin and other digital currencies and seeing Facebook’s stablecoin Libra as a potential challenge to its capital account control. As the bitcoin price climbs back above $7,600 just a few days before Christmas, it will be interesting to see what is on the 20/20 horizon for everything the crypto world has become in the last decade and will surely blossom and grow in the upcoming decade.

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Author: AnTy

Guangzhou, China Introduces 1 Billion Yuan Fund to Accelerate Blockchain Development

Guangzhou state government launches a 1 billion yuan fund, approx. $140 million USD, to boost blockchain innovations in the state. Guangzhou Huangpu District and Guangzhou Development Zone, who make up strategic technological decisions came up with the “Detailed Rules for Implementing Several Measures for Accelerating Blockchain Industry Leading Change”.

Guangzhou’s $140 million fund to accelerate social capital agglomeration in blockchain

On October 29 reports emerged from top economic news sites in China confirming the state of Guangzhou is introducing a 1 billion Chinese yuan ($140 million USD) subsidy fund to accelerate blockchain development in the region. The fund will be available to blockchain initiatives from different districts with an eye on government service enhancement and technological progress.

According to a thread of tweets from Primitive Crypto Fund Co-founder, Dovey Wan, Guangzhou will release government funding amounting to $140 million USD to increase capital funding in blockchain based products focused on federated governance chain products and public blockchains with no incentives (tokens).

One of the largest economic and business news outlets in China, Caijing, reports plans to share the fund between the two major categories with a public chain construction receiving a maximum of 10 million (~1.4 million USD) and the alliance chains receiving a maximum of 3 million yuan. There remain doubts on what a public blockchain without a token will look like as the lack of incentives means the network will not be secured.

China accelerates efforts in blockchain

Earlier in April the state started integrating blockchain and artificial intelligence in operations applying the system to issue business licenses on an immutable platform. China is seeing rapid adoption in blockchain technology despite the ban on crypto exchanges and ICOs. The recent speech by President XI Jinping on efforts to integrate blockchain in systems further shows the commitment by the government.

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Author: Lujan Odera