The world’s second-largest economy in terms of annual GDP, China, may launch its very own state-backed cryptocurrency and issue it to seven institutions in the coming months. Reports have it that the technology behind the cryptocurrency is already prepared and that it could launch as soon as November 11th.
China to Launch State-Backed Cryptocurrency
According to reports, China’s central bank will launch a government-backed cryptocurrency in November of this year.
Commenting on the matter was Paul Schulte, who was the Global Head of Financial Strategy for China Construction Bank until 2012. He said that the cryptocurrency will be distributed to certain institutions and major corporations in the country. These include the Industrial and Commercial Bank of China, the Bank of China, Alibaba, Tencent, Union Pay, and the Agricultural Bank of China.
An anonymous source who is reportedly close to the matter and involved in the development of the cryptocurrency (dubbed Digital Currency/Electronic Payments) also confirmed that seven institutions would receive the new asset when it launches. He mentioned that another major institution could also get its hands on it.
The anonymous source also said that the technology behind the cryptocurrency has been ready since the beginning of last year and that the new cryptocurrency could launch as soon as November 11th. Interestingly enough, the date coincides with Singles Day, China’s busiest shopping day.
Should the project see the light of day, it’s probably safe to assume that the cryptocurrency won’t have a hard time getting into people’s hands. Electronic payments are already well adopted in China, while the institutions that will reportedly receive the cryptocurrency initially will be responsible for dispersing it to the country’s 1.3 billion citizens.
Interestingly enough, the anonymous source also said that the hope is that the cryptocurrency will also be used within the United States through correspondent banks.
The move comes amid growing tensions between China and the US which have caused the yuan to experience substantial declines and historic lows.