The People's Depository financial institution of China is placing a strong emphasis on the geopolitical stakes of the state's cardinal bank digital currency development.

An article published in the PBoC-run magazine China Finance this weekend argued that Beijing should "accelerate the step [of CBDC development] to seize the first track" in the global race to issue fiat digital currencies.

The article stated that China should seize the advantage of condign a first mover in the arena of digital currencies, which information technology characterized as the "new battlefield" of inter-country competition.

At stake, the article claimed, would exist significant changes to the geopolitical status quo in international finance and an opportunity to break dollar hegemony and internationalize the yuan.

Moreover, data feedback from a PBoC-issued digital currency would be benign for national monetary policy, all the more than crucial in a post-pandemic landscape fraught with economic challenges.

The article outlined that, equally of the end of April 2022, the PBoC's research unit of measurement has filed 130 cryptocurrency-related patent applications, which cover the gamut of issuance, apportionment and implementation.

The cardinal bank's research unit had first been established in 2022 and the project has proceeded apace in 2022. Testing of a digital wallet for the currency is underway past China's state-run commercial banks.

In August, Beijing announced a trial run of its digital yuan in Shanghai, Beijing, Guangzhou and Hong Kong, involving 400 million people, or roughly 29% of the state's population.

The PBoC is besides planning to employ the digital yuan at the 2022 Wintertime Olympic Games. A senior executive recently indicated that the currency volition be "mainly positioned" as M0 and as such, will need to comply with laws and regulations related to cash management.

Beyond the digital currency race, both China and the U.s.a. take vied closely in recent years in the field of blockchain inquiry and development. A study published final week showed that despite Chinese firm Alibaba filing the most patents and then far this year, the The states currently takes the lead as the state with the most blockchain patents.