- China recently filed as many as 84 patents as part of its CBDC development.
- The patents seem to be focusing on all aspects of the coin and the development of a crypto industry within the country.
- Many countries have followed the country by trying to create their own CBDC, whether due to concerns of digital yuan or Facebook's Libra.
Despite numerous countries’ concerns regarding China’s announcement of its own CBDC (Central Bank Digital Currency), the country seems to be closing in on the launch of its coin. Recent reports indicate that China’s central bank, the People’s Bank of China (PBoC) recently filed as many as 84 patents in regards to CBDC and DCEP (Digital Currency Electronic Payments) system.
Just before the PBoC filed all of these patents, the US Chamber of Digital Commerce released an investigative study with interesting results.
According to what is known, the patents revolve around designing protocols for controlling the supply and issuance of the digital renminbi. More than that, they also focus on frameworks for conducting interbank settlements, as well as the digital yuan’s integration with the country’s current retail banking infrastructure.
The DCEP working group is also developing the so-called ‘tokenomics,’ and the patents focus on this aspect of China’s crypto program as well. However, there are also some patents that focus on plans regarding programmed inflation control.
China’s central bank also filed patents pointing towards the creation of a middle-layer entity, which would reportedly let users deposit fiat and withdraw digital currencies. A number of patents also focuses on the creation of crypto wallets and chip cards that CBDC’s retail holders might take advantage of.
The world responds to digital yuan
China is clearly progressing successfully with its CBDC project, and the President of the Chamber of Digital Commerce, Perianne Boring, commented on the moves by saying that China seems to have made major investments into the initiative. It certainly seems to be taking it very seriously, which is a complete opposite of how the US approaches the crypto industry.
China has yet to announce a launch date of its CBDC, but the progress on the project is obvious, and it caused a wave of interest in Europe and the US alike. Many assume that its digital yuan might be adopted by smaller nations as well, which is why major economies’ central banks started working on their own CBDCs.
Even the US Federal Reserve chairman, Jerome Powell, recently revealed plans for a digital dollar that would rival digital yuan and Facebook’s Libra, although he stressed that such plans are still in the early stage.
Japan’s lawmakers are also trying to push for the creation of digital yen due to digital yuan and Libra alike.