As regards China’s proposals to initiate a Central Bank Digital Currency (CBDC), the People’s Bank of China (PBOC) has filed not less than 84 digital payments-related patents.
This is according to the Financial Times.
The patents are related to its proposals to initiate a digital currency electronic payments DCEP system.
The amount of CBDC-related patents by the bank was gotten after an investigative research by the United States Chamber of Digital Commerce.
Reports have it that the patents are for the purpose of conducting interbank payments and integration of the CBDC with China’s surviving retail banking infrastructure.
The patents will concentrate on constructing strategies that will regulate the allocation of the digital renminbi.
Some patent filings are for the establishment of a middle-layer entity that will enable clients put in fiat and then withdraw the digitized renminbi.
Some others are for the intended ‘tokenomics’ that the DCEP working group is considering, while some indicate proposals towards programmed inflation control mechanisms.
Related patents, furthermore, indicate the invention of digital wallets or chip cards for retail holders of the CBDC.
Similarly, Beijing has been working on its intended digital currency as well.
Although no date has been announced by the authorities for its launch, it is moving along without difficulty.
CBDC growth in China resulting in wave of interest
The growth and improvement of the Central Bank Digital Currency in China is causing concern across Europe and the United States as they seem interested.
Beijing’s plan to have a sovereign digital curency could be accepted by lesser nations.
This, in turn, has heightened the anxiety on central bankers in main economies.
Most of them are now considering initiating their personal digital currency .
Jerome Powell, chairman of the United States Federal Reserve, while emerging before the Congress on Tuesday, February 11th, disclosed that China’s CBDC proposals and Facebook’s Libra have taken CBDC to the vanguard.
Reports has it that Japan is planning to lobby the United States to allow sovereign digital currencies be an important emphasis of the ensuing G7 conference.
Some legislators in Japan similarly want the Bank of Japan to develop a digitized yen in reaction to China’s CBDC schedules.