The people’s Bank of China continues to patent elements of the state cryptocurrency

According to the State intellectual property office of China (SIPO), laboratory studies of digital currencies with the people’s Bank of China (PBOC) has filed two patent applications, each of which describes a particular aspect of the system that combines the key features of cryptocurrency and the current monetary system. In the 12 months since the founding of the laboratory has filed 41 patent applications related to this technology.

All together, they can create the technology to issue digital currency and also supply wallets to store and «pass-through» transfer of assets.

For example, a recent patent describes a digital wallet, allowing users to check all completed transactions. In earlier patent applications describe how the transactions through the wallet.

The ultimate goal is to create digital currency, which has features of cryptocurrency, but it could be widely applied in the current financial system, as it will allow «to overcome the isolation of cryptocurrency on the blockchain and the current monetary system».

Judging by recent patents, wallet functions this system will not be confined solely to the storage of the private key for any asset. In addition, it is also not like a mobile app for payments, which only displays in the interface the amount of and does not provide access to peer-to-peer system to store assets.

Moreover, this wallet can store digital currency issued by the Central Bank, and any other authorized asset that can be protected by multi-signature and stored in a decentralized way.

In one of the patent applications described a mechanism that will allow the use of digital currency cryptocurrency functions in the conventional financial world.

This hybrid approach is consistent with the position of Vice-Director of NBK fan Ifaa (Fan Yifei) and head of the research laboratory Qian Yao (Yao Qian). Both Chinese officials advocated a balance between centralization and decentralization of the new system.

Anyway, all of these patent applications allow us say that NSC is working on its own digital currency, and also that this technology may be expanded to other Central institutions.

«The fundamental shortcomings of virtual currencies issued by private organizations, is excessive volatility, a low level of trust from society and limited range of use. Therefore, the Central Bank will inevitably produce their own digital currency which will surpass the volume of circulation of the existing Fiat currency,» wrote the lab in November 2017.

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