China’s PBoC Digital Currency Research Team Signs a Deal with Huawei to Boost its Fintech Initiative
The digital currency research wing of China's Central Bank has announced a partnership with telecom giants Huawei to accelerate its fintech research. This is the first kind of public announcement about a major partnership by the People’s Bank of China (PBoC).
Huawei broke the news about the strategic partnership on its WeChat account but did not divulge any details of the partnership. However, the news about the strategic partnership with Huawei broke just days after China announced 5G services in 50 cities. Many speculated that the installment of 5th generation telecom services is to intensify its effort to connect its cities and gear up for the emerging technologies of blockchain.
Although there is no official statement behind ramping up 5G services and now the strategic partnership with Huawei which many in the US believe has a direct string attached to the government in power, it is interesting to note that Huawei has already invested big in blockchain and Artificial Intelligence.
The telecom giants launched their blockchain service last year for enterprises to help the developers create, deploy and manage blockchain applications faster and at a much more efficient price. Huawei is one of the largest telecom providers in China and is known for its closeness to the state, though they officially decline any such thing. It also supported the plans of the central bank to launch a digital currency before Facebook's Libra.
The CEO of Huawei Ren Zheng had said,
“Even China is able to issue such currencies, why wait for Libra? The strength of a state is greater than that of an Internet company.”
China is known for its work power and rapid growth and right after the country's president Xi Jinping stated that they should be at the forefront of blockchain adoption and growth, the world's most populated nation has seen several announcements one after another. First, they passed a crypto law, then the China Merchants Bank invested in Bitcoin wallet BitPie, which gave rise to the rumors that after blockchain, China might move forward to regulate Bitcoin in some form.