China has made no efforts to hide the fact that it was diving headfirst into blockchain technology and cryptocurrencies. Banking officials in the Red Dragon have also commented multiple times on the future of a central bank digital currency.
New reports have shown that China is ramping up developments in the Fintech sector with its central bank filing 84 CBDC-related patents
The Financial Times first reported that the central bank of China was given the go-ahead by the government to outperform existing CBDCs. China had first come into the fintech picture when the head of the central bank, as well as Xi Jinping, admitted that utilizing blockchain technology was the way to go.
Information on the number of patents first surfaced after an investigation initiated by the United States Chamber of Digital Commerce. The last time the CDC was in the news was when it made its stance in the Telegram vs SEC case. This time around the CDC discovered that the Chinese patents focus on designing protocols that will control the issuance and supply of digital renminbi.
Perianne Boring, the President of the Chamber of Commerce added that China has made massive investments into the fintech industry. He also claimed that China was taking a very drastic approach from the United States about the blockchain industry. Some of the patents were related to the creation of a middle-layer entity to help customers deposit fiat and withdraw renminbi.
Some of the patents were in connection with the ‘tokenomics’ concept. The DCEP working group has also revealed that there were planning towards programmed inflation control mechanisms. Although no dates have been announced for the launch, many are expecting the digital renminbi to change the phase of the financial sphere.
Other countries have also taken steps to improve the digital assets sector. A think tank of central bankers from Canada, Sweden, Japan and Switzerland along with the European Central Bank has been set up to give clear definitions to the crypto industry. The group is set to have its first meeting in April.