Research Laboratory of the people’s Bank of China filed per year over 40 patent applications related to the development of digital currency with the properties of both cryptocurrencies and the current monetary system.
The focus of the documents is given to the individual elements of the system of digital currencies which together represent the technology, including the release of the digital currency, wallet for storage and interaction with the funds “pass through” method.
As in the most recent application filed last Friday, describes a digital wallet that gives users the ability to view all the transactions. In other applications has provided a detailed description of how to simplify the transaction.
As applications, the main task of the patents of the Central Bank is to “eliminate the disconnect between the cryptocurrency and the current monetary system”. The developers hope to create a hybrid digital currency with one hand with the advantages of cryptocurrency, and with another — one more suited to the current financial structure.
According to the patent, unlike a standard crypto-currency wallet, the Bank has developed purse will not be just a place of storage of the private key to the media. It is also different from existing mobile payment services because they do not use peer-to-peer way to store assets, but merely inform the user about the available amount.
As an alternative is a purse in which to store the digital currency issued by a Central Bank or another authorized Central structure. The funds will be encrypted by analogy with cryptocurrencies with the help of private keys and their security will be ensured through the use of multipoles. Assets will be stored directly from the owners, but in a decentralized way.
The authors of the patent are convinced that the mechanism, developed by the laboratory can simplify the use of cryptographic digital currency in the financial world. This concept also supports the Deputy head of the people’s Bank of China Fan Yifei (Fan Yifei) and head of the research laboratory Qian Yao (Yao Qian). They both advocate a balance between the two pillars of centralization and decentralization.
Note that the patent application confirm that China’s Central Bank continues developing its own digital currency, and also plans to expand its scope among the other Central agencies.
So in one of the bids submitted in November 2017, it said
“Virtual currency, the Issuer of which are private companies, have significant disadvantages, including price instability, lack of public confidence and limited use. Thus, the creation of a digital currency of the Central Bank was logical to increase the current turnover of Fiat currency.”
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