Why China sees Libra as a Threat to Their Central bank Digital currency?!

By alberdioni8406 | S.O.S | 8 Jun 2020


China digital yuan have been on track and developments for about 6 years now and accordingly to China local media could be anytime released to the market which already have pilot programs running from different associates on the country and recently the Agricultural Bank launched an App that could be for testing the app that will carry the initial phase of the digital yuan involving local employees that could receive in CBDC some money for transportation or other kind of goods that are designed to test the coin!

The coin also have been on plans since the COVID-19 surges in late December that increased the need for a digital asset that for many other reasons could also help protect the citizens from new infections caused by infected paper money.

But all isn't roses to China digital money as they see the future Libra global stablecoin as big threat to their plans...why they think that?!

China digital currency project was recently showed up to some officials from the Chinese government at the Communist Party School that could offer them more knowledge about the project and also teach them about Crypto, exchanges, market and Libra!

Libra seems to be the major problem to the system of CBDC from China, and I could see why:

  • Despite being a Central Bank digital currency owned by the Chinese government and one of the mostly powerful economies on the world the future coin will only works inside the country, strictly protected and highly controlled by the government.
  • Libra stablecoin will be a composite from many currencies around the world, which will work almost in every corner of the world, with powerful companies backing it and already with a user base from Facebook with almost 4 billions of users that are potential customers.

If China digital currency could be launched firstly will be more prepared to confront the Blockchain industry in the country and will have payments service, such as Alipay but with Libra on track this service could be easily surpassed with Facebook pay using Libra...this would be a Titans fight!

This will be a development that  I am waiting to see the End!

#rememer to stay protected from COVID-19 stay home.

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***free image from pixabay with no copyright infringement.

 

***Find also the article at Uptrennd platform from my authorship.

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