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The People’s Bank of China is in the process of hiring blockchain specialists in a bid to develop their own central bank-backed cryptocurrency.

PBOC Looking for Skilled, Experience Developers to Aid with State-Back Cryptocurrency

(Source: The Wall Street Journal)

Many employment advertisements posted online by the People’s Bank of China show that the Chinese state administration is in the process of developing its own, yuan-based digital currency.

According to job posts made public on Wednesday as part of the central bank’s annual hiring for 2019, the Digital Currency Research Institute arm of the bank is seeking new employees focused on areas ranging from finance to cryptography.

The bank is currently looking to hire a total of four employees, the South China Morning Post reported. The experts need to be specialized in computer science, cryptography or microelectronics, and hold a master’s degree or above, according to the job descriptions.

Developers would be working on the development of a chip for the processing of end-point transactions, a cryptography-backed security model, and a fiat-linked cryptocurrency. Other advertisements posted by the bank targeted finance and economy experts that could help the PBOC analyze the potential regulatory risks and economic theory behind the launch of a central bank cryptocurrency. The bank is reportedly giving preferential treatment to those with previous experience in blockchain and big data.

The Central Bank to Create a Sovereign Virtual Currency That Solves the Problems of Cost and Transparency

The recently published job post is the second initiative taken by the Digital Currency Research Institute since 2017. However, PBOC’s efforts to launch a state-backed digital currency date back to 2014.

Back in March 2018, the bank outlined its agenda for the year and said that their biggest priorities were promoting research and development of the central bank’s digital currency, which could replace physical Renminbi notes.  However, as a centrally-controlled digital currency would be easier to trace, it’s much more likely that the digital currency would first be tied to fiat rather than a decentralized value system before replacing physical Renminbi notes, the South China Morning Post noted.

Yao Qian, who leads the research at the People’s Bank of China (PBOC) has said last year that the currency could drive down transaction costs, increase the efficiency of monetary policies and extend financial services to rural areas. The bank’s recent move is in sharp contrast to the government’s harsh stance on crypto trading, crypto exchanges and any form of digital currency in the country. How the country will manage to introduce regulation around the future asset-backed, state cryptocurrency without affecting the newly proposed bans is yet to be seen.