Breaking “the Silo Between Blockchain-Based Cryptocurrency and the Existing Monetary System” is a Priority for the PBoC

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The Digital Currency Research Lab at the People’s Bank of China has been working hard to develop a cryptocurrency which would be composed of features of both cryptocurrencies and the present monetary system by filing more than 40 patents in less than a year, reported Coindesk on June 26.

According to PBoC’s patents, the main goal is to “break the silo between blockchain-based cryptocurrency and the existing monetary system” to facilitate a wide adoption of cryptocurrencies and its utilization by current financial systems.

The Research Lab filed 2 new patents on June 22, which makes the total number of patents submitted since its creation of 41, according to Data from China’s State Intellectual Property Office (SIPO).

Each patent is focusing on a special feature of a digital currency system and the bank is planning to combine all of them in order to create a technology that would issue a cryptocurrency.  The technology would also use an “end-to-end” method for transactions and the storage of assets in a wallet.

The patents submitted last week outlines a method where the wallet would store a cryptocurrency issued by the central bank, use a multi-signature security system and users will hold their cryptocurrency in a decentralized way which would reduce the risk of fraud.

The Digital Currency Research Lab expressed in a patent,

“Therefore, it’s inevitable for the central bank to launch its own digital currency to upscale the existing circulation of the fiat currency.”

It is obvious that the People’s Bank of China is working in issuing its own central bank digital currency with the massive number of patent applications filed.

 

 

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