Alibaba and Tencent First To Receive Chinese Digital Currency

According to sources, the People's Bank of China is giving its first round of central bank digital currency (CBDC) to online retail giant Alibaba, Internet giant Tencent, five banking organizations and one unknown entity.

Alibaba and Tencent First To Receive Chinese Digital Currency
Alibaba and Tencent First To Receive Chinese Digital Currency

As China's central bank gets ready to launch its own cryptocurrency, Forbes is reporting that seven institutions will be among the first to receive and interact with it. Included in the initial batch of recipients are Alibaba, Tencent, and Union Pay, an association of Chinese banks. Additionally, the Industrial and Commercial Bank of China and Bank of China, two of the world's largest banks, will also receive the state-issued cryptocurrency.

According to Forbes' sources, the institutions will be responsible for "dispersing the cryptocurrency to 1.3 billion Chinese citizens and others doing business in the renminbi." Furthermore, Forbes' sources indicate that China's central bank "hopes the currency will eventually be made available to spenders in the United States."

The Block previously reported that China's central bank was ready to launch its cryptocurrency after five years of research