Alibaba and Tencent Among the First to Receive China's Digital Currency

Alibaba and Tencent Among the First to Receive China's Digital Currency

Sources familiar with the ongoing developments have now revealed the first tier of recipients of the government-backed cryptocurrency, dubbed DC/EP (Digital Currency/Electronic Payments).

The source also said that the technology behind the cryptocurrency has been ready since previous year and that the cryptocurrency could launch in time for the Chinese e-commerce festival Singles Day, which falls on November 11.

The institutions would then be responsible for aiding in the dissemination of the digital currency to China's 1.3 billion Chinese citizens.

Binance writes that for the first part, the People's Bank of China (PBoC), will work through Chinese commercial banks to "issue and redeem China's CBDC".


The report added that the PBOC hopes its cryptocurrency will eventually be made available to spenders in the United States and elsewhere through relationships with correspondent banks in the West. Bank of England governor made a statement about how the whole world is exhausted of their currency being tied with the U.S. Dollar, but China's currency might not be the best alternative.

Moreover, as the Chinese CBDC targets to be a substitute for China's M0 supply, CBDC-holders would not receive any interest from the central bank if it is not parked in any financial institutions.

According to an excerpt from Tencent News posted by prominent Chinese crypto investor Dovey Wan, the sources are "not reliable" and issued "totally baseless guesses".

It emerged that the Chinese central bank, the People's Bank of China, was going to launch its own digital asset. Several traders said the PBOC's heavy use of its counter-cyclical factor to keep the midpoint above 7.1 per dollar was similar to a trend from late May through mid-June, when the central bank persistently kept the fixing above 6.9 per dollar level to rein in depreciation pressure.


As previously reported by Cointelegraph, The Global Times claimed that the PBoC had no plans to release its CBDC in November.

The digital currency would be the first of its kind to be adopted on a massive scale.

At that time, Mu described the central bank's "two-tiered" system, where the bank would create the cryptocurrency and a small group of trusted commercial businesses would "pay the central bank 100% in full" to be allowed to distribute it.


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