China has opened a national institute to research how to use cryptography to secure the digital yuan, state-owned People’s Daily reported on Wednesday.

  • The research and development center will be located in Jinan, a city in Shandong, a coastal province just east of Beijing.
  • The opening ceremony included a speech from a deputy governor of the People's Bank of China, Fan Yifei, as well as a representative from telecommunications equipment maker Huawei.
  • A Shandong official, Wang Xiaoyun, presented the province's blockchain-based education platform, as well as enterprise blockchains for government coordination, energy big data and supply chain finance.
  • People's Daily said the central bank digital currency will contribute to China's financial and national security, on top of injecting innovation into the digital economy.
  • China has been trying to beef up cybersecurity practices domestically since 2017, when it implemented the landmark Cybersecurity Law of the People's Republic of China.
  • A 2019 encryption law was controversial because it allowed the government to access commercial encrypted information.
  • Trials for the digital yuan have been underway since spring of last year, with a major trial set to take place at the 2022 Beijing Winter Olympics.
Disclosure
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.