Domestic communications industry continues to get involved in the digital currency industry

On July 22, a seminar on legal digital currency security technology led by Datang Telecom Technology Industry Group Xingtang Communication Technology Co., Ltd. (Xingtang Company) was held in Beijing. The conference invited academicians, experts and leaders in the fields of digital currency, blockchain, finance, cryptography and information security to conduct in-depth discussions on the legal digital currency system, development and security. Chen Shanzhi, vice president of Datang Telecom Technology Industry Group, and Lei Xinsheng, general manager of Xingtang Company, attended the seminar throughout.

At the meeting, President Zhang Yifeng of the China Banknote Smart Card Research Institute, Dr. Wu Zhifeng of the China Development Bank, and Cai Wei of the Beijing University of Aeronautics and Astronautics gave special research reports on the nature of currency, while Professor Fadende, Dr. Han Feng of Tsinghua University, Wang Jing of Bubi (Beijing) Network Technology Co., Ltd. and other experts gave special research reports on the characteristics and design elements of digital currency, the nature of blockchain, and the technical architecture, route, and key security technologies of legal digital currency.

The research on legal digital currency has received great attention from many countries. This seminar brought together the research forces of digital currency from all sides, bringing about the collision and exchange of the most cutting-edge views on the research of my country's legal digital currency. The experts attending the seminar unanimously agreed that passwords are the foundation of the security of the digital currency system. Xingtang Company is committed to the research and industrial promotion of passwords. Under the leadership of the national competent authorities, it will cooperate with the expert team in the field of passwords in my country to carry out special research on the password technology, application and management of the issuance of legal digital currency, and help promote the safe implementation of my country's legal digital currency.

In early 2015, Bitcoin Home received investment from C114 China Communications Network, and the two parties reached a strategic cooperation and jointly discussed the application of digital currency, blockchain, etc. in the field of communications. As the leader of the domestic communications industry, Datang Telecom took the lead in hosting this discussion, which reflects the importance of the communications industry to the application of digital currency technology. Datang Telecom may be interested in entering the digital currency industry.

Central bank digital currency:

The exploration of digital currency in the business field has never stopped, but whether digital currency can take root in a certain region is undoubtedly the best indicator of the government's attitude. It determines the behavior standards and evaluation criteria for enterprises and institutions in the region to engage in digital currency activities.

On December 5, 2013, the People's Bank of China and five other ministries and commissions jointly issued the "Notice on Preventing Bitcoin Risks" (hereinafter referred to as the "Notice"), pointing out that Bitcoin is a specific virtual commodity, not a real currency. Since then, the price of Bitcoin in the Chinese market has fallen rapidly, falling by about 60% in three weeks, and it has also plummeted in the international market.

On January 20, 2016, the People's Bank of China held a seminar on digital currency in Beijing. The seminar discussed and exchanged views on the overall framework of digital currency issuance, national digital currency in the evolution of currency, and nationally issued cryptocurrency. The central bank announced that it is currently studying the multi-scenario application of digital currency, striving to launch the digital currency issued by the central bank as soon as possible, and has achieved phased results in key digital currency technologies and related legal issues.

On June 4, 2016, Sheng Songcheng, director of the Survey and Statistics Department of the People's Bank of China, wrote an article in 21st Century Business Herald pointing out that Bitcoin is not a real currency and does not have the value basis as a currency.

On June 20, 2016, Yao Qian, deputy director of the Credit Information Center of the Central Bank, published an article entitled "Considerations on the Design of China's Digital Currency". It puts forward several key issues that my country should pay close attention to when promoting the design of digital currency, including the connotation and extension of digital currency, the model, the theoretical basis of digital currency, the architecture of digital currency issuance, key technical routes, risk prevention and control methods, and security measures.

On June 24, 2016, Sheng Songcheng, Director of the Survey and Statistics Department of the People's Bank of China, affirmed the positive role of digital currency at the "First Big Data Finance Forum". He also said, " The central bank's digital currency in the future can realize point-to-point payment and settlement without the help of a third-party centralized institution. This will help China build a new financial infrastructure, further improve China's payment system, and improve payment and settlement efficiency."

On June 27, 2016, Sheng Songcheng, Director of the Survey and Statistics Department of the People's Bank of China, reiterated that digital currency technology will enhance the central bank's control over currency issuance and circulation, make the operation and transmission of monetary policy more effective, and enable monetary policy to better serve economic stability and development. Sheng Songcheng emphasized that the nature of central bank digital currency is completely different from private digital currency. Only central bank digital currency has national credit support and can become a real currency.

On July 18, 2016, Sheng Songcheng wrote again that the nature of central bank digital currency is completely different from that of private digital currency. Only when central bank digital currency has national credit support can it become a real currency. The issuance and use of central bank digital currency will be a relatively long process, and there will inevitably be a series of procedures and a series of problems to be solved. Ultimately, reasonable design and issuance procedures will be used to regulate money supply, maintain basic price stability, and enable monetary policy to better serve economic stability and development.

On July 18, 2016, Yao Yudong, director of the Financial Research Institute of the Central Bank, was invited to attend the first Londi Financial Technology Summit held in Shanghai, and delivered a speech entitled "Supporting China's New Economic Normal with Financial Technology". At the meeting, Yao Yudong delivered a speech on the application of global blockchain and the outlook for blockchain in China, and on behalf of the Financial Research Institute of the Central Bank, he made suggestions on the current research and development of blockchain in China, suggesting that we seize the opportunity of blockchain research and development, adopt a follow-up strategy, actively prepare to build a SC/BC alliance that meets the needs of China's financial market and is widely participated by commercial banks and various non-bank institutions, namely China's R3, accelerate the formation of China's SC/BC standards, and actively strengthen blockchain application pilots to ensure that China has achieved its due leading position in the application of blockchain technology. China needs its own blockchain alliance.

  About Datang Telecom: Datang Telecom Technology Co., Ltd. is a high-tech enterprise controlled by the Institute of Telecommunications Science and Technology (Datang Telecom Technology Industry Group). The company was registered and established in Beijing in 1998. In October of the same year, "Datang Telecom" stock was listed on the Shanghai Stock Exchange.