China plans to launch digital currency before November 11, distribution details

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

Paul Schulte, until 2012 the head of finance strategy for China Construction Bank, 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 Bank of China Association will receive digital currency.

A separate source related to the development of the national digital currency of China, confirmed that seven organizations will be able to access the new asset at the launch stage. In addition, eight more institutions are being considered for inclusion in the first-stage recipient group, 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 that the launch is planned to be carried out no later than November 11, when China celebrates Bachelor’s Day and mass sales are held.

The organizations participating in the project will be responsible for distributing digital currency among the 1.3 billion people in China and other people who carry out settlements in RMB, the source added. The Central Bank of China hopes that over time, its digital currency will be used in the United States and other Western countries.

According to Mu Changchun, Deputy Director of the Payment and Settlement Decisions 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 Bachelor’s Day was 92,771 transactions per second. This will be facilitated by the rejection of the clean architecture of the public blockchain . The digital currency is intended to replace tangible banknotes and coins in circulation, but not RMB, held in bank accounts in digital form.

Information from sources on the distribution of the digital currency of the People’s Bank of China through a network of trusted organizations is consistent with an earlier description of the two-tier operating structure of Changchun.

Publication date 08/28/2019
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