According to a statement given by a former employee of one of the seven institutes, who now does independent research, the first-ever Chinese cryptocurrency that the Chinese Central Bank will launch shortly will be distributed among seven trusted institutions.
This has brought a lot of implications for traders on systems like Bitcoin Loophole and exchange investors alike.
The former head of financial strategy for China Construction Bank, Paul Schulte stated that the Industrial and Commercial Bank of China and the Bank of China along with the Agricultural Bank of China with two of China’s technology companies Tencent and Alibaba and Union Pay will the among the first to receive the cryptocurrency.
A separate anonymous source, who is also involved in creating the cryptocurrency, called Digital Currency/ Electronic Payments or DC/EP, has confirmed the above statement. In addition to that, a mention of an eighth institute had also been made, the name of which was not provided.
The source, a former agent of the Chinese government, revealed that the base work and technology for the cryptocurrency has been completed since last year and could be launched by around 11th of November which is also known as Single’s Day- china’s busiest shopping day.
The source said, the mentioned institutes will be responsible for distributing the cryptocurrency after its launch to the people of China and others who do business in the Yuan. The Central Bank hopes it will gradually be available for U.S spenders and others via connections with banks in the West.
However, none of the mentioned institutes or the PBOC confirmed or denied this claim. Nevertheless, during a speech at the China Finance 40 Forum on August 10, Mu Changchun, the new leader of China’s cryptocurrency project and the deputy director of the Paying Division of the People’s Bank of China, revised and posted on the WebChat channel of the PBOC about a two-tiered system of the PBOC.
In which, the bank would develop a cryptocurrency and a few trusted institutions will have to pay the PBOC in full 100% to be allowed to disperse it among the Chinese population.
This announcement of the two-tiered strategy of the PBOC by Mu now aligns and makes sense after the news of the new Chinese cryptocurrency came into light.