China files 84 patents for central bank digital currency

Source of this article: Blockchain Pencil

Author: OSATO AVAN-NOMAYO | compiled by: Maya

China's meticulous promotion of CBDC issuance

According to reports, the Central Bank of China has applied for 84 patents for its plan to launch a digital currency electronic payment DCEP system. The number comes from a survey by the American Digital Chamber of Commerce.

The patents reportedly focus on designing agreements that control the issuance and supply of digital renminbi, as well as the framework for implementing interbank settlements and the integration of CBDC with China's existing retail banking infrastructure.

Reports on these patents also state that the DCEP working group is considering the proposed "tokennomics." Some patents plan to implement inflation control mechanisms programmatically.

Other patent applications point to the creation of a middle-tier entity that will allow customers to deposit fiat currencies and withdraw digital RMB. Similar patents also mention creating digital wallets or chip cards for retail holders of CBDC.

Commenting on the scale of China's digital currency plan, Perianne Boring, president of the Digital Chamber of Commerce, said:

"The point is that China has made large-scale investments and is taking this issue very seriously. This is a stark difference from the US attitude and further highlights the whole thing.

As previously reported, China's work on CBDC development is progressing smoothly, but the official release date has not been announced.

U.S. begins to join digital currency race

China's progress in CBDC has attracted the attention of Europe and the United States. China's work on digital currencies in sovereign countries may be adopted by small countries, which has increased pressure on central banks in major economies to consider issuing their own digital currencies.

Federal Reserve Chairman Jerome Powell appeared in Congress on February 11. He revealed that developments such as Facebook's Libra and China's CBDC program have made CBDC a topic for the United States to face.

In Japan, some lawmakers are urging the Bank of Japan to develop a digital yen. According to reports, Japan also hopes to lobby the United States to make sovereign digital currencies the main topic of the next G7 meeting.

Central Bank think tanks from Canada, Sweden, Switzerland, Japan and the European Central Bank (ECB) will hold their opening sessions in April.