Significant development: The first buyers of China’s crypto currency have been identified!

Daniel Fowler
August 30, 2019

Tencent News later said the Forbes' report was speculatively citing a source close to the central bank.

Following this news, neither People's Bank of China nor any of the seven institutions have responded to requests of denial or confirmation. The source went on to say that the PBoC expects to make the cryptocurrency available in the United States and other countries, facilitated via relationships with correspondent banks.

"It appears the Chinese authorities no longer see the need to limit the tools at their disposal and that the currency is now also considered part of the arsenal to be drawn upon", Rob Carnell, chief economist and head of research, Asia Pacific at ING, said in a note. And a Binance spokesperson, who asked not to be named, later told Decrypt that, contrary to reports that the currency has been ready for a year and could launch as soon as November 11,"it may be hard to launch the digital RMB in November based on existing information".

The People's Bank of China set Friday's official yuan midpoint at its weakest in 11-1/2 years, though for a fourth straight day it was much stronger than the market expected, signaling the central bank's intention to slow the currency's decline. That "means the network construction has just started after five years of research".

Another similar potential project has been reported last week by the Bank of England governor Mark Carney who suggested the idea of a new currency backed by a number of central banks to replace the US dollar as the global reserve currency.

To conclude, it is hard to predict whether China's soon-to-be-launched virtual currency will be able to overturn the global economic model and shift the focus from the USA dollar to the digital renminbi.

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Per the spokesperson, "even if it is ready for launch soon, a testing period will be necessary, and there [are] no updates that the network is entering the testing phase".

The distribution method for the new digital currency resembles the approach taken by Facebook for its Libra cryptocurrency. Sign up to Debrief. That said, it could propel a broader adoption of digital currencies in the world. He recently described a "two-tiered" system, in which a small group of trusted commercial businesses would "pay the central bank 100% in full" to be allowed to disperse it to the masses.

Second Layer: Commercial banks would be responsible for re-distributing China's CBDC to retail market participants.

In Changchun's words, this virtual currency is created to handle 300,000 transactions per second. Moreover, Binance also reports that "smart contract architecture" has been on the table. A technical roadmap-including the questioned use of blockchain technology-has yet to be addressed, Binance said.

Binance researchers said that they will be continuing to monitor the situation.

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