China shows open interest in introducing virtual currency. The launch of the Central Bank's digital currency (CBDC), supported by the Chinese government, can be carried out this November already, as Forbes reports citing sources in the know.
Along with insider information, Forbes also received some coverage from Paul Schulte, who previously served as the head of the strategic financial department of China Construction Bank. Schulte assures that PBOC will launch a state-supported cryptocurrency and issue it to seven institutions in the coming months. The first seven institutions will include the largest leaders of the Chinese economy like Alibaba, Tencent, China Construction Bank, Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China and Union Pay Banking Association of China.
The Chinese digital currency CBDC is codenamed DC/EP (Digital Currency/Electronic Payments). During the launch, recipient institutions will be responsible for distributing cryptocurrencies to 1.3 billion Chinese citizens and other business people. The source added that the central bank hopes that the DC/EP currency will become available for purchases in the USA and elsewhere, thanks to a relationship with banks in the West.
Schulte revealed some of the technical parameters of DC / EP. First of all, the Chinese government’s project is very similar to Facebook's Libra. However, the Chinese are already at the final stage, and they have no problems with their own regulators since the government itself issues DC/EP.
Also earlier talking about DC / EP plans, he noted one significant difference with the Libra network. The Chinese platform is capable of processing up to 300,000 transactions per second, while Libra plans to reach only 1,000. Such a statement confirms the information that DC / EP will not be based on a “pure blockchain architecture''.