China Works On Developing Its Own Digital Currency, A Mix Between Cryptocurrency And Fiat Money

China’s efforts to develop a digital currency of its own are tilted towards a model that combines the main features of a cryptocurrency and the existing fiat monetary system in the Asian country. That is the idea that has emerged from research into patent applications filed by the Digital Coin Research Center since its creation last year.

The information, based on data from the State Intellectual Property Office of China (SIPO), indicates that the Digital Coin Research Center, created in June 2017 by the People’s Bank of China, had filed 41 patent applications related to the creation of a digital coin as of Friday, June 22nd, 2018.

According to research published by Coindesk, each patent corresponds to a specific aspect of the system which, when combined, would make possible a technology capable of issuing digital currency and providing the user with a wallet that stores and processes the asset on an ‘end-to-end’ basis. The ultimate goal would be to achieve such an integration that the new digital currency with cryptographic features could be widely incorporated into the existing financial structure.

China proves, once again, its affinity for cryptocurrency and blockchain technology

Among the characteristics of the wallet developed by the Chinese Government, it is worth mentioning that it will be compatible with different types of cryptocurrencies issued by authorized bodies and will have a multi-signature security mechanism.

Some spokesmen for the Chinese government, such as the deputy governor of the People’s Bank of China, Fan Yifei, and the head of the research laboratory, Yao Qian, have publicly expressed opinions in keeping with the implementation of this hybrid digital currency, aimed at achieving “a balance between centralization and decentralization.”

Although the model for the new Chinese cryptocurrency-related digital currency does not adhere to the concept and philosophy of a true cryptocurrency, it is clear that the government of China is in favor of the use of blockchain technology in various sectors and processes.

In fact, activities such as mortgage registrations and check validation are already being carried out, or are in the process of being executed, with the support of the blockchain technologies.

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About the Author: Anna Galvez

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