China’s Digital Currency Research Institute partners with the Hong Kong’s based Artificial Intelligence firm SenseTime to speed up the process of developing China’s national digital currency called Digital Currency Electronic Payment (DC/EP).
As reported by South China Morning Post, the deal will help out in managing “risk control and operational capabilities.” The main purpose to get the services of the Artificial Intelligence startup is to improve the stability of state digital currency by deploying Artificial Intelligence in its development.
The report reads:
“It marks the latest high-profile collaboration between the central government and major companies, as testing of China’s sovereign digital currency escalated this month and more reforms are planned for other domestic industries.”
SenseTime has recognized as one of the most valued AI startups as its technology is employed by the tech mobile giant Huawei. The new partnership between SenseTime and Central Bank’s unit China’s Digital Currency Research Institute will boost up the development and the practical implication of China’s digital currency.
China to Launch DCEP in four Pilot Cities
The central bank scheduled to test digital currency by May. According to the plan, the 50% travel subsidies will be given to employees in China’s four different cities including Xiongan, Suzhou, Shenzhen, and Chengdu.
China is thinking about launching its digital currency since last year. If China becomes successful in rolling out its state digital currency, it will become the first-ever country having state-owned cryptocurrency. “China, which aims to lead the world in AI and 5G mobile communications, would become the first major economy to roll out its own digital currency when its tests are completed. There has been no official timetable announced for launching the digital currency,” the report added.
The central bank of China will govern and control the supply and distribution of digital yuan. It will then issue the cryptocurrency via different commercial banks. The tech applications will offer their part in transferring assets such as WeChat and Alipay.