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Richard Adrian
Aug 28, 2019
by Richard Adrian

Adopting China’s Digital Currency across the First Eight Institutions

CBDC

Table of contents

  1. Eight Institutions to Adopt the CBDC
  2. Issuance in the United States
  3. In Conclusion
After five years of planning and developing the government’s first digital currency; China is ready to roll out its crypto currency. During a meeting of the Chinese Finance 40 Group, the Chinese Central Bank announced plans to launch the Central Bank Digital Currency (CBDC). However, until recently, the Bank of China announced; that it was rolling out the first round of the currency to 8 institutional entities. Various media sources disclosed that among the organizations are;  Tencent (An internet giant), Alibaba (Online retail), five banking organizations and another unknown entity.

Eight Institutions to Adopt the CBDC

In a Forbes report by Paul Schulte, the following institutions were named although they all remain unconfirmed. Alibaba and Tencent alongside, China Construction Bank, the Bank of China, the Chinese Banking Association Union Pay and the Commercial Bank of China.  An anonymous source also revealed that the above seven entities would be the first institutions to receive China’s CBDC; which they abbreviated as DC/EP (Digital Currency/Electronic Payments). Despite, the source confirmed that an eighth entity will come onboard; and the DC/EP report will be clear as early as by November 11.

Issuance in the United States

The Central Bank of China will task the named institutions with the distribution of the digital currency tokens to participant enterprises and Chinese citizens. Additionally, the source reported that China’s central bank was akin to circulating the tokens to buyers residing in the United States. This overseer’s dispersal would happen via correspondent banks; however, it wouldn’t be very soon.

In Conclusion

There are rumors that the Libra Whitepaper inspired China’s CBDC to involve nongovernmental entities in the distribution process. However, the launch and issuance of China’s digital currency is likely to bring to live the CBDC before Facebook’s Libra coin.

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Adopting China’s Digital Currency across the First Eight Institutions
Richard Adrian
Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience.

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