Shenzhen to head re­search into na­tional dig­i­tal cur­rency

Global Times US Edition - - BIZUPDATE - By Zhang Hong­pei Page Ed­i­tor: [email protected]­al­

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.

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