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Tencent is going to create a digital currency research group to support the development of a digital payment sector by using blockchain technology.
Tencent, the Chinese technology giant that operates the social media app WeChat, has announced that it is planning to develop a digital currency research group. This research group will have the responsibility of further advancing various blockchain technology research projects. According to fresh reports by iFeng, the company had released an official statement to its employees telling them that it is seeking someone to head the proposed research group.
The yet-to-be-established digital currency research group will most probably focus on the further growth of Tencent in the digital currency payment arena by using blockchain technology. With this research group, the parent company will strive to study digital payment solutions to enhance its products in the industry.
Additionally, the new group will be expected to implement government policies in the new payment methods. It will also evaluate innovative business models for different scenarios. Tencent, established in 1998, is a major conglomerate operating within China. Most of its subsidiaries mainly offer internet-based services and products. The company is also heavily investing in emerging technologies including blockchain and Artificial Intelligence (AI).
WeChat Sells Blockchain Diamonds
As we reported earlier, Tencent announced its new partnership with Alrosa, the biggest diamond-mining firm based in Russia. It also partnered with the Everledger blockchain platform to launch a new retail diamond-focused mini-program. The new program was aimed at WeChat’s one billion active users.
The collaboration between these three companies is designed to enhance transparency and consumer trust all through the diamond supply chain. It will enable social media users to buy diamonds with full knowledge of their characteristics, origin, and ownership history.
Tencent Develops Shenzhen’s Blockchain Invoice System
At the start of November, Shenzhen’s taxes service announced that at least 10 million blockchain-based invoices were issued in the Chinese tech capital. It also announced that it will continue to actively promote blockchain-enabled electronic billing. Interestingly, Tencent designed Shenzhen’s blockchain invoice system.
More than 7,600 companies have already implemented the blockchain-based invoice system. Reports reveal that the system has processed a total value of almost $1 billion. The blockchain invoicing service has already been successfully applied so far in local insurance, finance, hotel catering, retail, and parking services.
China Dive into the Digital Currency World
In the meantime, the People’s Bank of China (PBoC) revealed that it is also striving to develop its local central bank digital currency (CBDC). The CBDC will expand the digital use of Yuan internationally. A majority of the officials of the central bank have already affirmed that although the digital currency will operate on decentralized technology, the bank will centralize and control it entirely.
According to earlier reports, the central bank plans to test the launch of this currency in two cities. It will do so in Suzhou and Shenzhen. Additionally, it will distribute the first batch of the currency to several technology companies and financial institutions. Tencent is also on this list together with Union Pay and Alibaba.
The focus on blockchain-based services in China has significantly increased after the speech by President Xi Jinping back in October. The president boosted the technology and encouraged the country to capitalize on it.