China’s Central Bank is Making a Way to Digital Currency with Global Tech

By Rajat Gaur

It has been a recent report that China has joined hands with private industry to roll-out its central bank- backed digital currency. Sources from the Global Times reveals that there are still a number of leading companies China Merchants Bank, Alibaba, Huawei, and Tencent who are in partnership with People’s Bank of China to issue digital yuan. 

As the source from the industry insiders, they have closely analyzed that Alipay, the Financial arm of Chinese e-commerce along with cloud computing companies like Alibaba has accounted five patent in just 3 months this year. The patents are linked to the development of China’s digital yuan. 

The industry insider states that judging from the patents, the first of technological advancement has been successfully on the finish line. 

In conversation with the Global Times, Cao Yan, Managing director of Renaissance Foundation dropped a statement that if there is a light in China of lowering down its interest rate into negative territory as an final option or circulating digital currency, or showing directions such policy to commercial lending and loans would reach the expectations.

As economic pressure is increasing due to the coronavirus pandemic, it has been considered to have originated in Wuhan, China. This has got success as they established to solidify the new currency’s basic features and functions.   

Insider believes that the central bank is drafting legislation to roll-out the patents which is going to happen ahead of the time. The covering of this patent holds a  challenge of putting technological developments including digital wallets, anti-money laundering, issuance, anonymous trading support, and transaction history. These new developments will be further used to store the currency. 

Lastly it has been reported that China’s central bank is on the verge to introduce technological advancements and focus on the developments to avoid threats which have been taking place and introduce new-age security to the industry.