The main aim of the Cryptocurrency is to prevent the centralization and to snoop on the financial transactions. But the state-back cryptocurrency defies the main objective of the cryptocurrency. According to the latest reports from China, the Chinese Central Bank is going to launch the first state-backed cryptocurrency in the markets. Alibaba, Tencent, and five other giant companies in China are the first ones to receive the same. Paul Schulte, Former Global Head of Financial Strategy at China Construction Bank, revealed the information as he is now working as an independent researcher.
According to Paul Schulte, Alibaba, Tencent, Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China and Union Pay will receive the first batch of a state-backed cryptocurrency. Currently, the Chinese Central Bank is developing the Cryptocurrency or Digital Currency for exchange in the Chinese markets. The source closely related to the development has confirmed that the seven entities in China will receive the cryptocurrency in coming months to initiate the online payments. The Chinese Government is preparing for the launch of state-backed cryptocurrency from last year, and the infrastructure was in place from a long time. According to the experts, the Government could launch the cryptocurrency on the busiest commercial day in China, the Singles Day.
If launched on November 11th, the institutions will have the task of distributing the cryptocurrency to 1.3 billion of the Chinese citizens. Also, the institutions will have to spread the currency to all the businesses who deal in renminbi, the physical money of China. The bank is expecting the new cryptocurrency to made available to the spenders in the United States of America and other countries to expand the network of the currency. In a similar attempt, Facebook is launching Libra cryptocurrency, which is backed by multiple financial institutions in different countries, unlike Chinese Cryptocurrency, which is entirely governed by the Chinese Government.