Xiao Lei: China’s PBoC is Well Prepared for Launching a State-backed Digital Currency
China is continuing its way of cryptocurrency and blockchain technology development. The Digital Currency Research Lab at People’s Bank of China (PBoC) has filed 41 patents application over the past 12 months.
Xiao Lei, a famous financial analyst indicated that all of the recent four new patents filed by PBoC have centered the fundamental technology of a state-banked currency which means China is planning to release its own digital currency.
According to data from China’s State Intellectual Property Office (SIPO), since May 29, the Digital Currency Research Institute at PBoC has filed 4 new patents within a month, which includes “the query method and query system of digital currency transaction information”, “the synchronization method, terminal and system of a digital currency wallet”, “the exchange method and system of a digital currency” and “the querying method and system for linked accounts based on a digital currency wallet”.
The Digital Currency Research Lab was established by PBoC on January, 2017. This research institution is aiming to explore commercial applications of blockchain and digital currency payments and to see their integration with the existing monetary system.
As early as November 2017, the lab submitted an application, which outlines the “fundamental flaws” of crypto assets issued by private entities. The patent conclude a state-backed cryptocurrency is “inevitable” in order to “upscale the existing circulation of the fiat currency”.
From the general direction of all the patent applications submitted by the lab, we can see the PBoC eyes on wallet service and crypto-based transactions.
Xiao Lei indicated that, the current patent filed by PBoC includes entire core technique for launching a state-banked digital currency, from the query of transaction information, to the synchronization processing of a digital wallet, as well as the operation of the terminal and operational system. The lab even applied patent for a digital currency exchange method, and a system to maintain linked accounts based on a digital currency wallet.
Which means China is not only thinks about to issue digital currency, but also has thought about how to issue, manage, settle, and even to establish the interaction between digital currencies and fiat money of various countries. More importantly, all these technologies have already applied for patents. In other words, the practical application will be placed in the near future.