PBoC to Collaborate With Huawei For Fintech Research

Expersts says it's the first publicly announced deal by the central bank with a big-name company
06 November 2019   206

Chinese technology giant Huawei has announced a strategic partnership with a division of the People’s Bank of China (NBK). The latter is studying digital currencies. This is reported by The Block.

The collaboration is focused on fintech research. Other details have not yet been disclosed.

In the summer, Huawei CEO Ren Zhengfei supported the NBK's intention to issue its own digital currency. He said that China is able to create an analogue of the Libra coin.

According to the head of the research unit of the Chinese central bank, Wang Xin, Libra is a threat to the traditional financial system. In July, he announced that it was a coin from Facebook that could push the NBK to accelerate the release of its own digital currency.

In August, Mu Changchun, deputy head of the payment unit within the NBK, noted that the prototype of the digital currency was already ready, and the research group worked out the blockchain architecture for it.

Recently, Vice Chairman of the China Center for International Economic Exchanges, Huang Qifan, said the NBK will be the first central bank to issue a viable digital currency in the world, while the Libra project will fail.

Huawei has long been interested in blockchain solutions. In 2016, the company joined the Hyperledger blockchain consortium, and in 2018 announced the launch of a blockchain platform for creating smart contracts.

Bakkt to Release Consumer App This Year

The app can be used for a wide range of tasks, e.g., crypto and securities trading, virtual goods purchase, etc
23 January 2020   92

Institutional Investor Platform Bakkt will release an app for retail investors this year, with which users can pay with cryptocurrency.

According to the president of Bakkt Adam White at the World Economic Forum in Davos, the application can be used for a wide range of tasks. In addition to trading cryptocurrencies, it will support various virtual “goods” like points of loyalty programs.

In addition, in the future it is possible to add securities trading, as well as the creation of a portal for shops and merchants. That is, the application will be more like a traditional fintech product like PayPal than a solution from a cryptocurrency exchange.

Although the Bakkt platform was originally created for institutional investors, the new director of Mike Blandina is very serious about entering the retail market. Earlier, he said that the application for retail investors should be released in the first half of 2020.

I do not think we are there yet. What gives me optimism is that we are seeing a lot of developer interest. I am confident that someone is going to find something.

 

Adam White

President of Bakkt

 White added that the cryptocurrency market is still underdeveloped.