Forbes: China will attract Alibaba and Tencent …

Forbes: China will attract Alibaba and Tencent …

Forbes: China will attract Alibaba and Tencent to spread its digital currency

In the coming months, the People’s Bank of China will release its digital currency and provide access to seven institutions, writes Forbes, citing a former employee of one of them..

Paul Schulte, who was China Construction Bank’s head of finance strategy until 2012 and now an independent researcher, said that the world’s largest bank Industrial and Commercial Bank of China, its former employer, Bank of China, Agricultural Bank of China, two China’s largest financial and technology companies Alibaba and Tencent, as well as the Union Pay association of Chinese banks will receive digital currency.

A separate source linked to the development of China’s national digital currency has confirmed that seven organizations will be able to access the new asset during the launch phase. In addition, eight more institutions are being considered for inclusion in the group of first-line recipients, he said, declining to specify details..

According to the source, the technology that will form the basis of the digital currency was ready last year. He claims the launch is scheduled for no later than November 11, when China celebrates Singles Day and has massive sales..

The organizations participating in the project will be responsible for distributing the digital currency to 1.3 billion Chinese residents and other people who make payments in yuan, the source added. China’s central bank hopes that over time, its digital currency will be used in the US and other Western countries.

Forbes: China will attract Alibaba and Tencent ...

According to Mu Changchun, Deputy Director of the Payment and Settlement Solutions Division of the People’s Bank of China, the national digital currency will be suitable for 300,000 transactions per second, while the peak on the previous Singles Day was 92,771 transactions per second. This will be facilitated by the rejection of the clean architecture of the public blockchain. Digital currency is intended to replace tangible banknotes and coins in circulation, but not RMB held in digital bank accounts.

Sources’ information on the distribution of PBOC digital currency through a network of trusted organizations is consistent with an earlier description of Changchun’s two-tier operating structure..

Forbes: China will attract Alibaba and Tencent ...
Forbes: China will attract Alibaba and Tencent ...

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