China’s Central Bank Claims Forbes’ Report on CBDC Inaccurate Speculation

As China’s central bank gets ready to launch its own cryptocurrency, Forbes reported early this morning (Beijing time) that the People’s Bank of China would launch a state-backed cryptocurrency and issue it to seven institutions in the coming months, in an immediate response to it, sources close to the central bank said that the statement above is simply an inaccurate speculation.

According to the Forbes’ report on August 27, China’s central bank will give its first round of central bank digital currency (CBDC) to seven institutions as early as November 11. Citing Forbes’ source Paul Schulte who previously worked as global head of financial strategy for China Construction Bank, the largest bank in the world – the Industrial and Commercial Bank of China, the second-largest bank in the world – the Bank of China, the Agricultural Bank of China; two of China’s largest financial technology companies, Alibaba and Tencent; and Union Pay, an association of Chinese banks, will receive the cryptocurrency.

In the report, an anonymous source who’s involved in the development of CBDC confirmed that the seven institutions above would receive the new asset when it launches, also disclosing an eighth institution that could also be among the first tier of recipients, but refused to provide its name. The source added that the technology has been ready since last year and CBDC could roll out as soon as November 11.

These institutions reportedly will be responsible for “dispersing the cryptocurrency to 1.3 billion Chinese citizens and others doing business in the Renminbi.” Additionally, the source disclosed that the central bank “hopes the currency will eventually be made available to spenders in the United States and elsewhere through relationships with correspondent banks in the West.”

However, a few hours after the news broke out, a source told Sina Finance (one of China’s largest financial news providers) that the statement in the report was an inaccurate guess.

According to a previous report by 8btc, China’s state digital currency features a two-layer operation mechanism that entitles commercial banks or other institutions to disperse the CBDC and it is ready to roll out, which the Forbes’ report actually echos with. But the immediate clarification under the name of some “source” makes it unclear how soon the long-awaited world’s first central bank cryptocurrency will come out.

The country has been stepping up its efforts in developing its central bank digital currency these years, but few signs of progress have been revealed to the public; while the release of Facebook’s Libra whitepaper motivated the CBDC designers to involve non-governmental entities in its development and bring CBDC to the sight of the public.

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