At the moment, the laboratory of the bank has filed more than forty patent applications that can form the basis of the future digital coin.
Despite the fact that China came out of the world's cryptocurrency market a year ago, the government has not given up the idea of developing blockchain and cryptocurrencies inside the country. According to the State Intellectual Property Office of China (SIPO), the National Bank of China's crypto-research laboratory has already filed more than 40 patent applications for blockchain-tools in preparation for the launch of the state cryptocurrency. Together with two applications filed on Friday June 22 their number has reached 41 − these are the results of the first year since the founding of the laboratory, Hacked.com writes. In this regard China is the leader of the patent race in the field of blockchain and cryptocurrencies and the United States follow it.
Having researched all the applications it is possible to form the general picture of the upcoming launch of the national currency. Each of the patents presents a certain aspect of the future cryptocurrency system and together they allow creating the technology capable of issuing a virtual currency under the state control. The ultimate goal is to bridge the gap between digital currencies and the existing financial system and create the mechanism that has all the advantages of cryptocurrency but is more applicable in the financial world.
«The virtual currencies issued by private entities are fundamental flaws given their volatility, low public trust, and limited useable scope. Therefore, it is inevitable for the central bank to launch its own digital currency to upscale the existing circulation of the fiat currency», − the representatives of the laboratory said last year.
The laboratory of the PBC is also working on the technologies for storing and transferring assets. One of the latest patents describes the digital wallet that allows users (and at the same time the regulators, if it is necessary) to check and track the transactions. In addition the functions of the developed wallet will not be limited to storing private keys for the particular asset without providing the access to the peer-to-peer system for their storage. On the contrary, judging by the patent, it will be possible to store the cryptocurrency issued by the central bank or other authorized assets protected by multi-signature in the wallet.
It can’t be said with 100% certainty that all these patent applications will necessarily lead to the release of China's cryptocurrency because the regulatory environment can change at any time but the PBC has seriously embarked on the development of this idea. The Chinese officials are trying to balance the decentralization and centralization but this task is quite complicated because even nominally decentralized cryptocurrencies do not always meet the requirements put forward for such systems and the state control does not help.
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