Central Bank Digital Money R&D Accelerates, Multiple Institutions Actively Lay Out Related Patents

Recently, the Central Bank once again emphasized the need to strengthen top-level design and promote the research and development of legal digital money. This news has attracted market attention, and the digital money sector has seen a significant increase.

Industry analysis suggests that Central Bank Digital Money may accelerate its launch after the pandemic. Pilot projects are expected to first unfold among several large banks. The introduction of digital money will bring new system demands to the banking industry, while also driving upgrades to core banking systems, ATMs, and other hardware facilities. Additionally, personal mobile terminals and POS machines may also face renewal demands. The issuance of digital money will further promote the application of electronic invoices.

It is reported that the Central Bank may have collaborated with some enterprises to complete the basic functionality development of Digital Money, and is currently drafting relevant regulations to prepare for the subsequent issuance.

According to the data, the Central Bank Digital Money Research Institute has currently obtained 76 authorized patents related to digital money, and 10 patents are under review. It is worth noting that since the end of 2019, the institute has announced several key patents involving the generation, distribution, circulation, and recovery of digital money, among other core processes. This indicates that, at the technical level, the issuance preparation work for the Central Bank Digital Money is basically ready.

In addition to the Central Bank, other institutions are also actively laying out related patents. A certain payment platform recently announced 5 patents related to Central Bank Digital Currency, covering various aspects such as issuance, transaction records, and digital wallets. A large state-owned bank has made significant progress in the areas of digital money offline payments and merchant acquiring.

Industry insiders point out that the successful launch of Central Bank Digital Money requires not only the continuous efforts at the Central Bank level but also the cooperation of relevant institutions in the issuance, distribution, and circulation stages. Currently, it seems that, in addition to the Central Bank, some large banks and payment institutions are becoming the main forces driving the implementation of digital currency.

In addition, some technology companies are also preparing for the promotion of digital money. A certain communication equipment manufacturer has signed a cooperation agreement with the relevant departments of the Central Bank to carry out fintech research. Some fintech companies have also stated that they have made technological preparations.

It is worth noting that although blockchain technology was initially considered an important technological foundation for Central Bank Digital Money, there are recent opinions suggesting that Central Bank Digital Money does not necessarily have to adopt blockchain technology. Central Bank officials have previously stated that digital money does not presuppose a technological route. This position is similar to that of some other countries' central banks.

Experts believe that as countries accelerate the research and development process of Digital Money, the competition over the technical route selection and ecological construction of Central Bank Digital Currency will become more intense. The specific implementation plans for Central Bank Digital Currency in the future and their impact on the market still require further observation.