China To Reportedly Launch Government-Backed Cryptocurrency In Novembe

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 upcoming 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 a state-backed cryptocurrency in November 2019. 

Commenting on the matter was Paul Schulte, who has worked as a 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. 

On another note, 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 different institutions would be receiving the new asset as soon as it launches. Moreover, he also mentioned that another major institution could also get its hands on it. 

The anonymous source also said that the technology which is 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. 

Ready-Made Distribution

Should the project see daylight, it’s probably safe to assume that the cryptocurrency won’t have any hard times getting in the hands of people. Electronic payments are already well adopted in China while the institutions that will receive the cryptocurrency initially will be responsible for dispersing it to 1.3 billion citizens of the country. 

Interestingly enough, however, the anonymous source also said that the hope is that the cryptocurrency will also be used within the United States through correspondent banks. 

It’s worth noting that the move comes amid a growing tension between China and the US which has caused the Yuan to be experiencing substantial declines and historic lows.

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Source: Crypto Potato