In a new report issued by Shanghai Securities News, the head of China’s Banknote Blockchain Research Center has claimed that the development of a state digital currency is underway – providing some measure of confirmation that the authoritative state might be seeking to leverage blockchain technology for its own uses.
Zhang Yifeng – who presently serves as head of the Blockchain Research Center – has claimed that research into digital currencies remains a pressing topic for the Chinese government, and that an estimated launch window has not, as yet, been determined.
The Banknote Blockchain Research Center is a subsidiary of the People’s Bank of China through both the China Banknote Credit Card Industry Development and the China Banknote Printing and Minting Corporation.
The news comes shortly after People’s Bank governor Zhou Xiaochuan claimed that the development of a state-backed digital currency is “inevitable”.
Tellingly, the Bank of China recently filed a patent for its own blockchain scaling solution. Principally, the patent describes a scaling solution which would involve the compression of data stored within a blockchain – a proposal that could effectively offer a way to scale blockchains to multitudes of users or data inputs.
The patent outlines a system wherein a full-size node, upon receiving a compression request from a client, would compress transaction data stemming from multiple different blocks into a new ‘data block’, which could then be temporarily hosted on a different storage system.
Following that, the data would then be run through a hash function with the hash value of the data block, and the subsequent compression transaction would record the relation of the compressed block, the data block, and the compression event within the blockchain.
The patent could possibly provide the Chinese state with a censorship or oversight mechanism for blockchain technology depending on the form of the temporary storage solution used.