Mark Zuckerberg: Facebook Cryptocurrency Will Be Able To Overtake Chinese Digital Yuan
Facebook CEO Mark Zuckerberg presented the text of his appeal to the American Congress, thanks to which he wants to change the attitude of regulators to the crypto project of the social network. One of the main lines of support was the opposition of Libra to the Chinese yuan.
Today, a specialist will speak to the US House of Representatives Financial Services Committee. Mark Zuckerberg will present Libra, as well as answer questions from the regulators of the project. According to the text of the document, the head of Facebook intends to lobby the stablecoin using two “lines of defense”:
- Libra can open access to banking services for 1.7 billion people.
The appeal says the insolvency of the current financial system:
The current system is failing them. The financial industry is stagnant and there is no digital financial architecture to support the innovation we need. I believe this problem can be solved, and Libra can help
- If Libra does not achieve its goal, China with its digital yuan may take the lead in this matter.
Earlier a representative of the People's Bank of China says that the Chinese cryptocurrency will be very similar to the stablecoin Facebook. When exactly the digital yuan will be released is unknown. Earlier in the media, information appeared that the cryptocurrency could be launched on November 11. However, subsequently, representatives of the Central Bank denied the information.
Although the launch date of the Chinese national cryptocurrency is not indicated, the very fact of the development by the government of the country of the digital equivalent of fiat positively affected the stock price of Chinese fintech companies. It is known that a new financial instrument is still under development. Recently, information has appeared on the network that representatives of the PRC are looking for specialists for their crypto project.
While China is actively working on digital Renminbi, the Facebook team is faced with regulatory pressure, which negatively affects the level of progress. In particular, due to the availability of questions regarding the stablecoin of the social network by the authorities, some alleged members of its association refused the project. Despite this, the Facebook team recently introduced the board and the first staff of the Libra Association. Recall that the estimated launch date of the stablecoin social network is June 2020.
According to Mark Zuckerberg, the launch of Libra will take place only if there are no issues about the project from the regulatory authorities. The specialist noted that stablecoin does not pose a threat to fiat. Its goal is to improve the capabilities of the current financial system.