Chinese Cryptocurrency CBDC Will Be Similar To Facebook’s Libra
The Chinese state cryptocurrency Central Bank Digital Currency (CBDC) will be much like Facebook’s Libra digital asset. CBDC tokens will be integrated into the Alipay payment platform and WeChat messenger.
Deputy Director of the People’s Bank of China (PBoC) Mu Changchun believes that CBDC coin issuance will have a positive impact on the economy. In an interview, he stated:
Why is the central bank still doing such a digital currency today when electronic payment methods are so developed? It is to protect our monetary sovereignty and legal currency status. We need to plan ahead for a rainy day.
According to Changchun, transactions in tokens can be performed without an Internet connection. WeChat and Alipay users will be able to transfer digital assets in applications. In August, Mu said the CBDC creation project is in its final stages, tokens will be released on November 11, 2019. The deputy director confirmed that the Chinese virtual currency has some similarities with Libra. In particular, it, like the Facebook asset, will function on the blockchain and become stablecoin, as its rate will be provided by the fiat reserves of the Central Bank.
PBoC specialists began researching the area of cryptocurrencies in 2014. He was tasked with exploring the possibility of issuing a national digital asset to reduce the cost of maintaining cash flow and tighten control over financial transactions. Changchun means natural disasters, which could interrupt the communications network. That is why access to the CBDC wallet will be available without the Internet.