The People’s Bank of China (PBOC) has reportedly filed 84 patents relating to its plans to launch a digital currency. The patents reveal the central bank’s plans which include integrating digital currency wallets into existing retail bank accounts. The potential for the Chinese central bank digital currency to achieve scale from the get-go has put several other central banks worldwide on high alert.
PBOC’s 84 Digital Currency Patents
The People’s Bank of China (PBOC) has filed 84 patents relating to its plans to launch a digital yuan, the Financial Times reported on Wednesday. The publication claims to have seen and verified all of them, which include:
Proposals related to the issuance and supply of a central bank digital currency, a system for interbank settlements that uses the currency, and the integration of digital currency wallets into existing retail bank accounts.
Several of the patents “indicate that China may plan to algorithmically adjust the supply of a central bank digital currency based on certain triggers, such as loan interest rates,” the news outlet detailed. Some patents “outline mechanisms to allow customers to make deposits with their existing banks and then exchange that for digital currency … Other patents are focused on building digital currency chip cards or digital currency wallets that banking consumers could potentially use, which would be linked directly to their bank accounts.” The patents were uncovered by the Chamber of Digital Commerce.
Patent attorney Marc Kaufman, a partner at Rimon Law who worked with the chamber on the project, commented:
Virtually all of these patent applications relate to integrating a system of digital currency into the existing banking infrastructure.