The People’s Bank of China through its digital currency research unit has announced the launch of a research center in Eastern China, Nanjing, a move which is targeted at advancing the country’s promotion of new age technologies in finance such as Blockchain technology and so on.
The central bank’s virtual currency subdivision which is usually referred to as Digital Currency Research Lab had indeed fulfilled its promise made when it entered the capital city of Eastern Jiangsu Province. The commitment is to ensure a radical development of finance technologies in collaboration with the provincial government. The proposed capacity of the new technology would efficiently power various Jiangsu’s academic and financial institutions which include the People’s Bank of China’s branch situated at Jiangsu with the University of Nanjing in their respective Fintech driven project.
According to a recent report, the Central Bank of China has considered creating an economic link between various government bodies and politics, research and development, manufacturing, education and other sectors as well. The establishment of the Nanjing center would primarily enable the People Bank of China to infuse high–tech parks, government departments, universities, research institutes, and financial institutions which will consequently develop enterprises into one constant thread of data sharing and give unrestricted access to information. This could be just one significant adoption of the Distribution Ledger technology (DLT).
The research and development unit has also indicated interest that it needs researchers in several new age technological fields such as; data, mobile, internet and most especially, artificial intelligence (AI) sector. This project would be aimed at creating a nexus between several new age technologies for the sole benefit of the People Bank of China-led government bodies
Nanjing Fintech Center; A Trial for China’s Digital Currency
With the latest trend in recent times regarding China and its stringent rules against the Bitcoin, it is a counterbalance to see that China has decided to rest its fiat currency plans on the same bedrock as Bitcoin which is the blockchain technology. The major reason for the establishment of the Nanjing FinTech center is to serve as a testing ground for the PBoC’s virtual Yuan prototype before it is being deployed into the mainstream in China.
The Digital Currency Research Unit has gone further to start up a new branch located in the Southern city of Shenzen all by itself which is referred to as Shenzen Fintech Limited with a capital of $300,000(over 2 million Chinese Yuan).
The Shenzen research and development lab has clearly followed the footsteps of the Nanjing branch as it has also partnered with local government there for the purpose of adopting the blockchain technology tools across the local academic establishment and financial institutions especially. The Shenzen unit has filed about 40 patents as at press time, most of the patent which is targeted at exchanges, wallet systems, and loan interest management.
Despite the fact that the Shenzen unit has positive support of Nanjing, it could only continue the research by accelerating the procedural preparation of the Chinese state-backed digital currency. However, the controversial Digital Currency of Yuan which has made headlines in a few weeks has no launch date yet.