China's central bank the People’s Bank of China (PBoC) has reportedly filled more than 80 patent applications related to the central bank digital currencies (CBDC), the Financial Times has learned.
According to the filled patents, China is deeply focused on the launch and emission of the CBDC. The patents also mention the inter-bank settlement system using the digital renminbi and the integration of digital wallets into existing bank accounts.
Some of the mechanisms mentioned in the patents describe the ability of citizens to make deposits in traditional currencies in bank accounts and then convert them into digital currency.
Other documents relate to the further distribution of digital currency through credit cards or special wallets, which can also be linked to bank accounts.
Patent applications were discovered by an American human rights group called the Chamber of Digital Commerce. China has taken the issue of digital currency very seriously and is investing a lot of money in it, said Chamber President Perianne Boring.
Recently filled patents confirm this assumption, as China seems to be trying to integrate the digital yuan into the existing banking system.
Although some patents disclose support for peer-to-peer data privacy, there are no mechanisms that would prevent the Chinese authorities from tracking transactions, Boring has warned.
As China prepares to launch CBDC in 2020, Japan is already urging other countries to catch up with China's digital currency plans and get ahead of them. Japanese authorities are concerned about the possible dominance of China on the digital asset market.
Earlier iHodl reported that PBoC announced it completed the design of its digital currency.
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