China might get its very own cryptocurrency after all. According to recent reports, the Chinese government is looking to develop a digital asset.
China’s Central bank is moving forward with the initiative in response to Facebook’s Libra potential Insurgence onto the crypto market.
The people’s Republic of China is known to be one of the few nations to still have a hostile stance against cryptocurrencies.
Back in September of 2017, its government banned ICOs and digital currencies exchanges. Then in 2019, they took it up a notch, with the total ban of bitcoin mining. Despite all of these measures, the black market of Bitcoin is flourishing in China.
Wang Xin, chairman of the Chinese Central Bank research bureau firmly believes that Libra could have a huge impact on the country monetary policy and financial stability.
According to Wang Xin, Libra can potentially challenge the Chinese cross-border payments system. He explained during a conference at Peking University’s Institute of Digital Finance in Bejing:
if [Libra] is widely used for payments, cross-border payments in particular, would it be able to function like money and accordingly have a large influence on monetary policy, financial stability and the international monetary system?
As per numerous reports, The People’s Bank of China is currently working to create a digital currency that will help the Asian republic in maintaining control over its economy that might soon be undermined by the anticipated emergence of Facebook’s Libra.
Despite the reluctant approach towards cryptocurrencies, China is the undisputed global leader in terms of blockchain technology implementation. So far in 2019, China has raised around $1.18 billion in regards to blockchain-related projects. Additionally, there are more than 263 blockchain ventures active in the Asian nation as we speak.
Ironically, China’s financial sector is the biggest beneficiary of the technology. It is being used in assets security for banks and brokers alike
As of now, it has been far from a piece of cake for Facebook’s Libra. The digital asset has been receiving continuous criticism from the global financial sector. First the United States, then Europe, and now China; Libra does not seem to catch a break with anybody within the financial sector.