Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Report: Alibaba, Tencent Among First to Receive China’s State-Backed Cryptocurrency
The People’s Bank of China (PBOC) is gearing up to launch its cryptocurrency, and according to Forbes, seven institutions will be among the first to handle it.
The first group of recipients include Chinese internet giants Alibaba and Tencent as well as the Middle Kingdom’s two largest banks, the Bank of China and the Industrial and Commercial Bank of China. Union Pay, an association of Chinese banks, also made a cut.
The remaining two companies were not named in the report, and a source told Forbes that an eighth, yet unnamed firm could be added during the time of launch.
Interestingly enough, Forbes’ anonymous source said that the tech behind the cryptocurrency has been ready since last year, and that the cryptocurrency itself could launch as soon as November 11. That’s Single’s Day, China’s busiest shopping day of the year.
At any rate, the recipient institutions will essentially be charged with “dispersing the cryptocurrency to 1.3 billion Chinese citizens and others doing business in the renminbi.” The PBOC apparently hopes that the currency “will eventually be made available to spenders in the United States and elsewhere through relationships with correspondent banks in the West.” Forbes’ source however, admitted that while that’s the plan, “it won’t happen right away.”