Alibaba, Tencent Among First Recipients of Chinese Central Bank’s Crypto

As the launch of China’s central-backed digital currency is looming, the bank has decided to distribute the crypto to seven banks and tech giants, according to a Forbes report.

Among the names that are about to receive the first batch of the digital currency are banking giants like China Construction Bank, the Industrial and Commercial Bank of China, the Bank of China, the Agricultural Bank of China, and the Chinese banking association Union Pay. In addition, tech behemoths Alibaba and Tencent will also receive the central bank-issued digital currency.

Another anonymous source told the publication that there is an eighth player in line to receive the digital currency. However, the name of the entity is not disclosed.

Dubbed as Digital Currency/Electronic Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term (DC/EP), the People's Bank of China is expected to launch its cryptocurrency as soon as on November 11, which is famous for being the busiest shopping day in the country.

According to the publication’s source, the institutions with the crypto will be responsible for dispersing the cryptocurrency to 1.3 billion Chinese citizens and also other business users using renminbi.

With the strategic distribution of the digital coins, the central bank is also looking to circulate it to the United States buyers using the banks’ international ties.

A centralized crypto

DC/EP is very similar to Facebook’s upcoming digital currency Libra Libra Libra is a yet-to-be-released cryptocurrency proposed by Facebook, Inc., that will aim to serve as a global payment system and a stable financial infrastructure that people across the world can use. The projected release date of the libra cryptocurrency is currently slated for 2020, while the project is currently being managed by the Libra Association.Headquartered from Geneva, Switzerland, the Libra Association main purpose is founded on three pillars.This includes the provision of a framework Libra is a yet-to-be-released cryptocurrency proposed by Facebook, Inc., that will aim to serve as a global payment system and a stable financial infrastructure that people across the world can use. The projected release date of the libra cryptocurrency is currently slated for 2020, while the project is currently being managed by the Libra Association.Headquartered from Geneva, Switzerland, the Libra Association main purpose is founded on three pillars.This includes the provision of a framework Read this Term. The central bank’s project is much more efficient than the social media company’s as it can handle 300,000 transactions per second, according to a Chinese central bank official, compared to Libra’s capacity of 1,000 transactions per second. However, the efficiency comes at a cost to the decentralized architecture, as the design of DC/EP is much more centralized.

Apart from China, the central banks of many other countries are also looking into digital coins. Finance Magnates recently reported that the central bank of Rwanda is researching the feasibility to launch its own cryptocurrency.