China is already close to the release of its own Digital Currency
Alipay Information Technology Co., Ltd to date, it has published several patents relating to the central currency’s digital currency.
Alipay participates in four functions of this digital currency. The first patent was published on 21 February this year and was subsequently applied by Alipay entitled “Method and Device for Performing Digital Currency Transactions and Electronic Devices“.
According to the available information, it is known that the digital currency of the central bank DCEP has a two-level structure and requires operational institutions to participate in the secondary issue of the digital currency.
One of the patents states that Alipay will participate in a secondary edition that is built on the same basis as commercial banks. The patent also defines how operational agencies can obtain a digital currency:
“The DC / EP emission quota obtained by the operational agencies usually depends on the amount of reserves paid by the operational agencies to the central bank. For example, using a two-tier investment system, an Operating Agency that has been authorized to issue a DC / EP may open a reserve account with the central bank and pay a reserve to the central bank of 100% of the quota.”
One of the most important inventions of one of the patents is the way in which digital currencies can be traced.
The digital currency will not be based on blockchain technologies, as is usually used in on cryptocurrencies, but will have to meet the same traceability as blockchain.
All patents about which we have information so far:
- On February 21, a patent was published: “Method and device for executing transactions with digital currencies and electronic devices”
- On February 25, Alipay published an account management patent: “A method and device for managing accounts in digital currency.”
- On February 28, Alipay published a patent on “a method and device for opening a wallet in digital currency and electronic device”
- On March 17, Alipay issued a patent on “a digital currency-based anonymous transaction method and system”
Alipay’s patents show that the readiness of the digital Chinese currency is essentially complete.
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