Within a few months, the central bank of China (the PBOC) plans to release its electronic currency and give it to seven major financial payment providers in the country for usage.
Tencent, Alibaba and Union Pay will be among them, reports Forbes, citing a former staffer of the China Construction Bank.
This was also confirmed by an anonymous source – a person who used to work for the Chinese government.
China Coin is about to launch
The so-called ‘China Coin’ could launch as soon as early November when in China the biggest shopping day (Singles Day) takes place. The seven (and possibly even eight fintech heavyweights, as mentioned by Forbes) will make the new crypto available to consumers all over China, and ultimately – even in the US and other countries around the world.
The latter is expected to be achieved via banks in the western part of the world. The anonymous source said:
That’s the plan, but that won’t happen right away.
Will crypto become a reserve currency?
Currently, financial institutions and global companies are busy implementing their crypto projects in hopes to turn fiat currencies into digital ones and replace the USD and other local currencies. The most famous example is Facebook’s Libra which is facing major hurdles from lawmakers and bankers around the world.
China has been preparing its ‘crypto coin’ for the last five years but Facebook’s plans regarding Libra have made it accelerate the final stage of producing the centralized, PBOC-controlled digital currency.
Recently, the head of Bank of England, Mark Carney, also expressed a view that new crypto issued by several global banks could replace the USD as a reserve currency.
BitMEX CEO: more people will embrace Bitcoin as banks will try to get digital spending under control
Back in April, the CEO of BitMEX crypto exchange Arthur Hayes, when speaking at a podcast, mentioned the situation that is currently happening in China. Hayes believes that within five years or so, most countries will ban cash and replace it with digital currencies controlled by their central banks.
The example he gave was China, where people almost always and nearly everywhere now pay with WeChat Pay app by simply scanning a QR code with price, even when buying a drink at a bar.
By introducing ‘China Coin’, the government wants to take people’s financial activities under control, tax them on every single purchase and have a tool to exclude them out of the financial system those who are not law-abiding enough, he said.
Under these circumstances, says Hayes, when cash is banned around the world, people will realize that only Bitcoin can help them keep their financial privacy and switch to using it.