China Accelerates its Cryptocurrency Project
According to an official of the People’s Bank of China (PBoC), the Chinese central bank could accelerate the development of its own digital currency.
Facebook has created a buzz since the release of its whitepaper on June 18. The giant of social networks presented its future cryptocurrency Libra, a stablecoin supported by large companies.On Monday, a statement was made by Wang Xin, head of the PBoC research bureau. It was during an event organized at the Institute of Digital Finance of Peking University that he said that if Libra was widely used for international payments and actually acted like money, “would have it has a great influence on monetary policy, financial stability and the international monetary system? ”
Among the many effects of Libra, we have that side of China. Indeed, the South China Morning Post reported that the PBOC is examining the situation with “great attention” and could accelerate the development of its own digital currency, in progress for some years.
Wang Xin said: “”The Facebook project has forced the bank to step up its research to create its own digital currency, as Libra could undermine cross-border payments, monetary policy, and even the country’s financial sovereignty.” …….We had an early start … but lots of work is needed to consolidate our lead”.
The PBOC has been working on the creation of a digital currency since 2014, in particular to replace cash and face the challenge posed by cryptocurrencies like Bitcoin. The huge East Asian country has banned bitcoin trading in the fall of 2017 and may soon restrict or even ban mining. Last year, the PBOC was very active in the blockchain sector and filed a total of 78 patents related to this technology.