People's Bank of China to Build Blockchain and Crypto Research Center to Test Digital Currencies

The People's Bank of China, China's central bank, is expanding its blockchain technology and digital currency research efforts after several successful tests, according to CNStock.

PBoC, the world's largest bank by total assets, is increasing the scope of digital currencies- and blockchain-enabled finance in the Far East and has partnered with Nanjing's municipal government to create a fintech lab focusing on the blockchain, artificial intelligence and digital currencies.

In this year alone, the PBoC partnered with a number of regional banks and academic institutions to develop blockchain solutions for trade finance, and is now set to deploy the test technologies to local administrations.

As part of China's newly-created fintech cities, administrations like Nanjing and Shenzhen will serve as blockchain hubs ahead of the country's ambitious plans to launch a Central Bank Digital Currency.

Just months ago, the PBoC-backed Digital Currency Lab established a fully-owned subsidiary, called Shenzhen Fintech Limited, in Shenzhen.

The lab is creating breakthroughs with regard to cryptocurrencies and holds over 40 patents.

As per reports, the patents are believed to facilitate a state-owned cryptocurrency, ranging from protocol building to launch, and provide a wallet solution for safekeeping assets.

The patents also indicate China's intention to create a digital currency that connects the digital realm to real-world banking, alongside introducing laws that scrutinize the use of crypto in the modern world.

The report follows PBoC's recent development, which includes deploying a blockchain-based trade finance infrastructure in Hong Kong and Macau.

All public and commercial banks are said to have participated in the venture.