A report by Beloit Bulletin reveals that the People’s Bank of China (PBoC) is initiating research in Shenzhen to lead the Chinese national digital currency dream.
The objective is to initiate crypto-currency as a viable currency in China and developing regions like Hong-Kong and Macau.
Shenzhen, which is referred to as the Silicon Valley of China, will accommodate research to formulate ideas for the utility of digital payments via blockchain technology.
One of the major incentives of this project is the Guangdong Province’s development and prosperity while simultaneously protecting the socialist essence of China.
Rumors have informed how PBoC has formed a unit catering to the digital payments without defining which digital currency will be used.
Huang Zhen, Professor of Economics and Finance at Central University, holds the opinion that Shenzhen might be the best city for this project. He explains that it has been the hub of various blockchain companies that turned out to be of utmost proficiency.
He also added that this project might form the foundation for leeching benefits from special major zones such as the Hing-Kong Special Administrative Region (SAR) and Macao SAR. Under such circumstances, the leading companies of the said technology will be the source of great exposure for the country and its newly formed unit.
Chinese national digital currency background
The government is running this project and has full autonomy over it since PBoC has been researching this since 2014, according to Mu Changchun, Deputy Director, payments and settlement, PBoC. This has led to seventy-four new patents sending in applications.
In 2017, China banned the trade between bitcoin (BTC) and Yuan due to the disruptive impact of this fast-growing industry. However, the Chinese government has taken up a more difficult challenge to form and organize a potentially uncontrollable unit.
An interesting tidbit, PBoC is the first bank in the world to initiate such a project through research in Blockchain technology.