We now know the reason why China’s central bank appears to be rushing to issue its “cryptocurrency” as quickly as possible. Beijing, reports suggest, is worried that Facebook’s Libra “cryptocurrency” will launch first.
According to English-language newspaper China Daily, the People’s Bank of China (PBoC) hopes to launch its state-run digital currency before Facebook gets the regulatory green-light to issue Libra, a blockchain token whose value will be stabilized by pegging it to a basket of assets.
Libra currently languishes in regulatory purgatory following an absolute beatdown on Capitol Hill last month. US politicians from Alexandria Ocasio-Cortez to Donald Trump attacked the social media giant’s cryptocurrency ambitions, and the Silicon Valley company’s numerous scandals have left it with few friends in Congress.
With Libra’s near-term future in doubt, Beijing has the opportunity to beat Facebook to the punch – and rip-off what it believes are the crypto project’s most appealing features.
Now instead of the American Govt recognising that digital currency WILL undoubtedly happen and the sheer amount of what’s at stake all they’ve done is give China a doorway to get to the top of the chain first. It’s a sad sad story indeed, oh well we will rather have the Chinese in control than Facebook, you?