Tencent Rumored to Establish Digital Currency Research Department in Response to National Policy

Rumors of China’s science and technology giant Tencent setting up a digital currency research group to study how to innovate business models and test application scenarios have sprung up. Some analysts believe that since Facebook in the United States plans to launch its own cryptocurrency Libra, China also needs private companies to make corresponding deployments.

When the People’s Bank of China has the opportunity to launch a central bank digital currency at the government level, private companies are also prepared to cooperate with national policies. Beijing Business Daily reported yesterday that Tencent has issued an internal letter stating that it plans to establish a digital currency research group. According to sources, this move is in response to the State Council’s opinion on the Shenzhen demonstration area, “the launch of digital currency research and mobile payment and other innovative applications in Shenzhen” call.

Because the Chinese government currently strictly monitors the issuance of digital currencies, many large companies have avoided participating in related research in order to avoid touching the pool. For example, Tencent has deployed the development of blockchain in 2015, but in the field of digital currency, no action has been seen. When other companies like Alibaba, Baidu, and Ping An Group were announced, they also focused on the research in the field of blockchain.

According to an internal letter from Tencent, the research group to be set up aims to promote the company’s layout in the payment field, so that this business can develop healthily in the long term. At the same time, various departments, such as WeChat and payment infrastructure platforms, must also play a synergistic effect to follow up on the latest developments in government policies.

The above report quotes that Liu Feng, director of the Blockchain Technology Research and Application Research Center of Shanghai University of International Business and Economics, said that Tencent, as the hegemony of Chinese social platforms, directly corresponds to Facebook in the United States. And it makes sense, too. “Tencent can use this action to fill the gaps in the development of digital currency in the social field and the next generation of mobile payments, and also promote China’s payment system to overseas markets.

However, Liu Feng is also concerned that China’s slow progress in supervision and legislation in related fields may slow down development. As for blockchain technology not yet being applied on a large scale in the global scene, it needs to break through existing technical obstacles.