Thursday , May 19 2022

China is stepping up its efforts to create a digital currency in response to Pound on Facebook


Beijing is paying close attention to Facebook's plans, as they can pose challenges for cross-border payments, monetary policy and even Chinese financial stability.

Beijing is stepping up its efforts to introduce its own digital currency backed by the government after the introduction of the Pound, Facebook's future cryptography, which could pose a challenge to cross-border payments, monetary policy and even financial stability. Asian giant Wang Xin, director of the National Bank of China Research Office, said on Monday at a seminar at the Beijing University.

In particular, Vang said that Banco Popular has been working with other institutions to jointly investigate and develop a central bank's digital currency and that the program has already been approved by the State Council,

"Chief: The US Dollar"

According to the head of the Investigation Office, Banco Popular pays "great attention" to Facebook's plans, because if Libra is used extensively for payments – especially cross-border – it could "have a major impact on monetary policy, financial stability and the international monetary system" .

On the other hand, China wants to know the composition of the currency to which the pound will be linked and the role the US dollar will play. Wang explained that if Facebook's currency is "closely related" to the dollar, "it can create a scenario in which sovereign currencies will coexist with dollar-focused digital currencies." "But basically there will be a boss who is the US dollar and the US," the senior official said, warning that this situation "will lead to series of consequences economic, financial and even international politics. "

  • Facebook expects its new digital currency to begin operating in the first half of next year.
  • Unlike the current cryptoLooks, like BattleKnight, Libra will be based on financial reserves, which means that it will not be so volatile and unstable.
  • The crypt will be run by a non-profit organization supported by several companies and organizations. For now, Libra Association has 27 founders and plans to raise this number to 100 and each of them to manage their own "node" where transactions are validated.

If you like, share it with your friends!

Source link