CocoColaKid has been strongly hinting at some sort of partnership/deal between VEN and PBoC since late December. Given his 100% track record of leaks/predictions, we *have* to consider this rumor to be materially plausible, if not downright credible.
*If* such a deal/partnership is announced, what would it mean for VEN or the crypto-community in general?
Before that, let me clear a few things about about People’s Bank of China (中国人民银行).
From the name of it, it sounds like a big, state-owned bank in China right? So that would make it rich and powerful, similar to a major American bank such as Chase or Wellsfargo?
Actually no. These are the largest four banks in China:
1. Industrial and Commercial Bank of China. (工商银行）
2. Bank of China. （中国银行）
3. China Construction Bank （中国建设银行）
4. Agriculture Bank of China (中国农业银行）
These are *the* movers and shakers of the world financial industry. In fact, these “Big Four” are not only the largest four banks in China, they actually are the [largest four banks in the *world*](https://www.investopedia.com/articles/investing/122315/worlds-top-10-banks-jpm-wfc.asp).
Wait, so where is People’s Bank of China then? Is it smaller? Less significant? Some rip-off of Bank of China that VEN managed to get in bed with?
Quite the contrary, PBoC is actually the entity that **lords over the Big Four**, as in it is *the Central Bank* of China that alone has the power to regulate monetary and financial markets in the country and they alone have the power to issue last word policies with regard to all financial markets in China (including cryptomarket). In a way, PBoC is the Federal Reserve of China, except with a [**$3.2 Trillion** cash reserve](https://en.wikipedia.org/wiki/People%27s_Bank_of_China), they are by far the largest central bank of any countries in the world. It will not be controversial to claim PBoC to be one of the two most influential financial entities in the world, along side the Federal Reserve.
Ok, so what does VEN have to do with this? Here is where it gets interesting. PBoC don’t issue much financial products, and their services aren’t consumer facing like your average banks. They will not really care about product partnerships, they are unlikely to even care about strategic partnerships or deals. If there is any forthcoming announcement, it will be *a strong signal* from the Central Bank of the world’s second largest economy on what their thoughts on blockchain/currencies are, and how much regulation/support/integration they will be providing to this nascent yet exploding market.
Even for people who have no stakes in VEN, this link, if materialized, would be paramount and will shake the whole cryptocurrency market. If there is any sort of real partnership announced, then not only will it be the most significant partnership the world of crypto has ever seen, it will likely become the most significant partnership the world of crypto ever *will see*. We are talking about the largest central bank in the world with more cash reserve than the top of the Fortune 10 **combined** here. We are talking about the institution that always give us FUD about banning crypto finally legitimize one of the blockchain tokens. This will not be a deal that propels VEN to the moon, its significance and gravity will bring the moon *to us*.
If you do business in China, you would know that connection (关系）is the number one most important resource, by far. Nobody would care about some English white paper or code on GitHub (nobody at PBoC would even know what GitHub is), they care about the who’s who behind the scene. With VEN being supported by Jim Breyer, the number one American tech icon in China, whose wife is on the board of Bank of China, it is a prime candidate for PBoC/Chinese to give their blessing to in order to dangle their feet in the blockchain water. The state partnerships so far are just preludes to what’s to come, and we have quite a few interesting weeks ahead of us.