https://wccftech.com/china-close-to-launching-its-own-digital-currency/

An increasing number of reports out of China recently seem to indicate that the country is close to launching its own version of a digital currency. The recent unveiling of plans by Facebook (NASDAQ:FB) to launch its proprietary cryptocurrency – known as Libra – might have played an important role in spurring this divulgatory attitude from China’s otherwise tight-lipped officialdom. Even though details are scarce and an official launch date is yet to be announced, the broad framework of this project has been revealed by Chinese officials over the past couple of weeks.

According to Forbes, China has opted for a two-tiered strategy vis-à-vis the anticipated launch of the digital currency wherein the People’s Bank of China (PBOC) – the Chinese central bank – will create the currency and then distribute it to seven key financial institutions of the country. These institutions will play the role of the primary dealer and will likely include the top five Chinese banks along with financial technology companies – Alibaba (NYSE:BABA) and Tencent (HKG:0700) – as well as the association of Chinese banks known as Union Pay. Accordingly, after receiving the digital tokens from the central bank, these institutions will then ensure their timely disbursement throughout the country. This dual structure of the currency has been confirmed by Mu Changchun, the deputy director of the Chinese central bank’s Payments Department, who justified this approach in the following manner: “It can not only use existing resources to mobilize the enthusiasm of commercial banks but also smoothly improve the acceptance of the digital currency.”