The technology war between China and U.S. seems to enter a new phase, where we might see China bringing up its very own cryptocurrency to compete Facebook’s Libra, persists Huawei CEO.
In the recent past, we have seen how trading tensions between the U.S. and China has increased. President Donald J. Trump banned Huawei in the U.S. residing beside the reason that Huawei is a security threat to America. With all this said, China has emerged as a new economic power, and it is a threat to U.S. and American companies.
Recently, the CEO of Chinese telecom corporation, Huawei, in an interview to Italian media channel said that China should come up with its own cryptocurrency, crypto that should be backed by the state.
In reply to a question regarding the Facebook crypto, Libra, Ren Zhengfei said that China has the full capacity to create its own digital currency, why should they wait for Libra. Adding further to the debate, Ren replied that a state possesses greater strength than an Internet company.
Making a strong point, Ren said that the time has come for the Chinese government to forestall Facebook’s digital currency. Ren was not certainly looking to make a comparison between Huawei and the social media mammoth though he mentioned that how Huawei has made development in the blockchain field, joining the Hyperledger consortium and the launch of cloud service backed by blockchain.
Since Libra’s emergence, the world media has given it an ultra-hype because Facebook owns it. Libra can come up on top because of the userbase that FB has, which is nearly around 3 billion. This is a massive plus for Libra, and we can see the core focus is to take the online monetary system to the doorstep of poor and unbanked.
Libra being owned by an American company can be exasperating for rival nations, especially China. That’s the reason why Ren wants China to develop its own crypto to attain supremacy against the U.S.
Huawei’s CEO didn’t mention that the company has any sort of intentions to create its own Libra-kind crypto. At the moment, Huawei is more focused on what they are doing. They have already given some tough time to Apple and have really succeeded in launching 5G. But who knows in future, Huawei comes up with its own cryptocurrency? It wouldn’t be a bad idea to target Facebook’s Libra.
So far, Libra is looking to satisfy the U.S. regulatory authorities and explain to them regarding the global currency system proposed by Facebook. So, Libra is yet to have clearance from U.S authorities. Though Mark Zuckerberg claims to have full- acquiescence with the lawmakers. According to the plans, Libra is set to launch by 2020.
In the meanwhile, China’s central bank members emphasized that Libra possess a particular danger, and it can have adverse effects on China’s economy. Libra’s ominous sign could drive the state to thing about creating its own digital currency.
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