The Libra project
Facebook has been busy during the past few months with the development of its upcoming cryptocurrency for the institutions and for the social media company.
The Libra project has sent a lot of discomfort to financial institutions around the globe. As the cryptocurrency seeks to disrupt the financial sector, the remittance market, monetary policies and governance systems.
The country currently looks at cryptocurrencies as a risky investment or asset class, which is why the country still has a blanket ban on them.
According to the central bank of China, it is creating its own cryptocurrency and the Bank is already making progress in this direction.
According to Wang Xin, who is the director of the PBoC Research Bureau, Facebook’s Libra project will help the U.S. dollar to be able to co-exist with other sovereign currencies.
This could create an effect where the US dollar gets a higher position in the economy and can bring political consequences as well.
China’s look on Libra
A former Central Bank adviser by the name Huang Yiping said that Libra has sent a warning signal to China as its role and lead in the financial markets begins to get more irrelevant.
The country has finally decided to look into creating its own cryptocurrency by forming a coalition of more than four universities in the country to foster this initiative. The universities include the Zheijang University, Peking University, Renmin University and the Shanghai Jiao Tong University.
It is interesting to see what the final goal of the Chinese Central Bank will be with regards to creating their own cryptocurrencies.
You may also be interested in: