Although Facebook is yet to launch its cryptocurrency, it appears that a competitive player is already emerging in the crypto market. One such example is China’s proposed new digital currency.
China’s new cryptocurrency v/s Facebook’s Libra
As per the latest Reuters report, China’s upcoming cryptocurrency will bear few similarities of Facebook’s yet to launch Libra coin. It also states that China’s cryptocurrency will be used across the country’s payment platforms, including WeChat and Alipay.
Recently, the senior official, Mu Changchun of the People’s Bank of China’s payment department said in a lecture which was published online;
“It (China’s new cryptocurrency) is to protect our monetary sovereignty and legal currency status. We need to plan ahead for a rainy day.”
While China’s new crypto is much like Libra in design, he further elaborates that the token would be akin to Central bank-issued paper notes.
Just like notes that can be used without an internet connection, Mu Changchun said ‘upcoming China’s cryptocurrency would also be used without an internet connection.’ Further, on a point, Reuters added Mu Changchun’s statement;
They could also be used on Tencent’s (0700.HK) WeChat and Alibaba-backed (BABA.N) Alipay.
China has been planning its ‘very own’ cryptocurrency since 2014
China has been on the top bulletins of crypto publications for some time now. However, as per the country’s newspaper, Shanghai Securities News, China’s central bank has been exploring the country’s very own cryptocurrency since 2014.
They set up a research team roughly five years ago to scrutinize the possible ways to eliminate the costs of circulating traditional paper money.
While cryptocurrency doesn’t require a central authority to monitor, China is more likely stepping up to decipher how well policymakers can control digital currency market via its new currency, as the state-run newspaper reads the long-time research on new currency intends to “boost policymaker’s control of money supply.”
Moreover, reports suggest the new currency will likely bed released by November 11 as Mu pointed out last month that China’s digital currency was ‘almost ready.’ In further explanation, Mu asserts that the currency wouldn’t be a direct copy-paste of Libra, but yes, it will have some similarities in terms of design.
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