Previously, China’s central bank announced it would launch a state-backed digital coin. The introduction will be in the coming months. The bank also said it would issue the digital coin to seven institutions.
This information was according to a former employee of one of the institutions, which is now a self-governing researcher.
Paul Schulte articulated that the Industrial and Commercial Bank of China, the Bank of China, and the Agricultural Bank of China will receive the cryptocurrency.
Schulte knew everything because he worked as global head of financial strategy for China Construction Bank until 2012.
In addition, two of China’s largest financial technology companies Alibaba and Tencent with Union Pay will also accept the cryptocurrency.
A separate source, who’s involved in the growth of the cryptocurrency, named the Digital Currency/Electronic Payments and confirmed that the seven institutions would be getting the new asset when it launches.
Moreover, an eighth institution could also be among the first tier of recipients.
Meanwhile, the source declined to deliver the name of the additional company.
Speaking under terms of secrecy. The source proved that the technology behind the cryptocurrency has been ready since last year. The source also formerly worked for the Chinese government.
Introduction of the Digital Coin
The cryptocurrency’s launch could be as soon as November 11. This is China’s busiest shopping day, AKA Singles Day.
According to the source, at the time of launch, the receiving institutions will then be in charge of distributing the cryptocurrency to over 1.3 billion Chinese citizens.
The distribution is also open to others doing business in the renminbi, China’s fiat currency.
The source added that the central bank anticipates the currency will sooner or later be made available to spenders in the United States and elsewhere.
This is through relationships with correspondent banks in the West. Lastly, he quoted, “That’s the plan, but that won’t happen right away.”
The plan to use various sets of China’s trusted institutions is to disperse the cryptocurrency into a similar number of other ideas currently penetrating around the world.
For instance, a basket of currencies circulated by central banks will support Facebook’s planned libra cryptocurrency. The Libra cryptocurrency is with the support of companies like Mastercard and Uber in the United States.
In addition, Vodaphone in England and Mercado Pago in Argentina also backs Libra.
Last week, Bank of England governor Mark Carney drifted the idea of a new currency backed by numerous central banks to change the U.S. dollar as the global reserve currency.