By Staff Writer
China’s central bank will launch a state-backed cryptocurrency in November and issue it to seven institutions in the coming months, according to a report in Forbes, which quoted two sources
The 7 institutions receiving the cryptocurrency according to sources are the Bank of China, the Agricultural Bank of China; two of China’s largest financial technology companies, Alibaba and Tencent; and Union Pay, an association of Chinese banks, will receive the cryptocurrency.
A separate source, who’s involved in the development of the cryptocurrency, dubbed DC/EP confirmed that the seven institutions would be receiving the new asset when it launches, adding that an eighth institution could also be among the first tier of recipients. Speaking under terms of anonymity, the source, confirmed that the technology behind the cryptocurrency has been ready since last year and that the cryptocurrency could launch as soon as November 11, China’s busiest shopping day, known as Singles Day.
At the time of launch, the recipient institutions will then be responsible for dispersing the cryptocurrency to 1.3 billion Chinese citizens and others doing business in the renminbi, China’s fiat currency, according to the source. The source added that the central bank hopes the currency will eventually be made available to spenders in the United States and elsewhere through relationships with correspondent banks in the West.
However, neither the People’s Bank of China nor any of the seven institutions mentioned by the source neither confirmed or denied the claim.