Tencent Denies Forbes’ Report on Involvement in Chinese State-Backed Crypto

Published August 28, 2019 | Updated August 28, 2019

china central bank
Image Source Shutterstock (People's Bank of China)

Tencent Denies Forbes’ Report on Involvement in Chinese State-Backed Crypto

Reportedly, the Chinese state-backed cryptocurrency project is due to for launch “in the coming months.” However, in a quick response on to the news on Forbes, a Chinese source confirm otherwise.

According to a former employee of Bank of China, and now an independent researcher, Paul Schulte, China will initiate the cryptocurrency plans with seven major financial services firm. The cryptocurrency will be issued to the Bank of China, the Agricultural Bank of China; Alibaba and Tencent; and Union Pay, an association of Chinese banks.

The recipients mentioned above institutions will then be responsible for making the currency viable to the Chinese citizens and other businesses.

A second source cited in the coverage suggested that the cryptocurrency might be launched as soon as November, 11 – China’s busiest shopping day, known as Singles Day.

The source which chose to remain anonymous was apparently involved in the development of the cryptocurrency. Besides confirming the seven institutions, it added that an eighth institution is also in the pipeline.

Furthermore, it also indicated that the DC/EP (Digital Currency/Electronic Payment) would be made viable across the world, including the US. It said,

“That’s the plan, but that won’t happen right away,”

Tencent calls them ‘unreliable’

However, the reports from the sources have been dubbed as pure guesses by Tencent. Dovey Wan, a crypto-analyst shared an excerpt from Tencent’s acknowledgment on the Forbes news. According to the press release, the ‘sources’ should not be trusted. She quoted,

“Both (sources in the report) are not reliable, totally baseless guesses”

Moreover, as earlier reported on CoinGape, China has suggested that ‘digital renminbi’ will not be a cryptocurrency, per se. It will be interoperable with one. However, the sources on Forbes cited that it will, in fact, be a cryptocurrency.

The Competition for the ‘Global Reserve Currency’

While Tencent has dubbed these reports as baseless, the fact that the launch could be near cannot be ignored as well. Reportedly, China has been working on it since last year, and it is ‘near completion.’ They have had to review their plans due to the Libra announcement. Now, the Central Bank of China is planning to extend the reach of Renminbi globally as well.

Furthermore, one of these digital assets, a Libra like crypto (backed by a basket of currency), or a state-backed stablecoin (like USDT) is expected to become the next global reserve currency. Currently, the US dollar is predominantly the reserve currency of the world. Now, China seems to be aiming to increase the viability of Renminbi. It is expected to boost Chinese trade and economy.

Do you think that China’s digital currency is near launch? Please share your views with us. 

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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