Central Bank Digital Money is advancing rapidly, with Alipay and Industrial and Commercial Bank actively laying out related patents.

Recently, the Central Bank reiterated the need to promote the research and development of legal digital money. The digital money sector subsequently experienced a strong surge, attracting widespread market attention.

Experts point out that Central Bank Digital Money is likely to be accelerated after the pandemic. Pilot programs are expected to first be launched among the five major banks, which will bring a series of system upgrade demands to the banking industry. At the same time, the issuance of digital money will also promote the popularization of electronic invoices, and encryption technology will play an important role throughout the entire industry chain.

According to reports, the Central Bank Digital Money Research Institute has obtained 76 related patents, and with the patents under review, the total number reaches 86. Notably, since the end of 2019, the institute has announced a series of patents involving key aspects such as the generation, issuance, circulation, and recovery of digital money. This indicates that, from the perspective of the Central Bank, the technical preparations for the digital RMB may be ready.

In addition to the Central Bank itself, the participation of supporting institutions is also crucial. Data shows that Alipay and Industrial and Commercial Bank have actively laid out patents related to Digital Money in the past two years, becoming the main force in promoting the implementation of Central Bank Digital Currency.

Since February this year, Alipay has announced 5 patents directly related to Central Bank Digital Money, covering various aspects such as issuance, transaction records, digital wallets, anonymous transaction support, and regulatory assistance, essentially achieving comprehensive support for the issuance of the digital renminbi.

Industrial and Commercial Bank has made breakthroughs in challenging areas such as "dual offline payment." The bank proposed two solutions based on blockchain and non-blockchain technologies, utilizing payment identification, digital certificates, asymmetric encryption, and other technologies to achieve offline payments. In addition, ICBC has launched a solution that allows merchants to receive payments without the need to open a digital money account, clearing obstacles for the widespread application of Digital Renminbi.

Although other large institutions have not publicly disclosed relevant patents, they have also made arrangements in the blockchain field. For example, China Construction Bank, Agricultural Bank of China, and Bank of China have launched blockchain-based financial service platforms. Telecom operators and technology companies have also explored digital money wallets, trading systems, and other aspects.

It is noteworthy that the technological route of Central Bank Digital Money still has uncertainties. Some believe that the decentralized nature of blockchain technology contradicts the needs of Central Bank's centralized management. Therefore, Central Bank Digital Money may not necessarily adopt blockchain technology, and other technological routes are also being considered.

Regardless of the final technical solution adopted, as the research and development process of Central Bank Digital Money accelerates in various countries, the competition and cooperation within the relevant industry chain will become increasingly intense. The specific implementation plan of Central Bank Digital Money in the future and its impact on the market still need further observation.