Shenzhen to head research into national digital currency
Research into a national digital currency, as mentioned in a central government document on Shenzhen’s development, will start soon under the guidance of China’s central bank.
In the document released on Sunday on building Shenzhen city, South China’s Guangdong Province, into a pilot demonstration area of socialism with Chinese characteristics, such innovative applications as digital currency research and mobile payments will be supported to develop in the city.
It is not clear what kind of digital currency research will be carried out by the local government of Shenzhen although analysts said the new project is related to the legal digital currency supported by the People’s Bank of China (PBC), the central bank.
The PBC calls the new unit “digital currency for electronic payments” (DC/EP).
“Shenzhen was selected as a pilot area to conduct the research since it is an ideal place featuring a cluster of blockchain companies with advanced technologies and innovative ideas,” said Huang Zhen, a professor at the Central University of Finance and Economics.
Blockchain, a digital, public ledger that records online transactions, is a major technology to develop digital currency.
In June 2018, the PBC established the Shenzhen Financial Technology Co, which is whollyowned by the state.
Shenzhen can also play a key role in connecting the Hong Kong Special Administrative Region (SAR) and Macao SAR within the grand landscape of the Guangdong-hong Kong-macao Greater Bay Area as the SARS are conducive for the Chinese currency to go global, Huang told the Global Times on Wednesday.
“In terms of technology and a talent pool, China is ready to unveil the digital currency,” Huang noted.