China's proposed new digital currency will bear some similarities to Facebook's Libra coin and would be able to be used across major payment platforms.
September 6, 2019 | AtoZ Markets - A top official at China’s central bank has confirmed that the country’s proposed cryptocurrency will be similar to Facebook’s Libra coin. The English-language website of the Hong Kong Economic Journal reported Friday.
Tech features of Chinese crypto
Mu Changchun, deputy director of the People's Bank of China's (PBoC's) payments department has reportedly made the comments during a lecture he gave this week saying that that Chinese cryptocurrency will be used across major payment platforms such WeChat and Alipay.
China's central bank-issued digital currency will be guaranteed by the central bank and thus as secure as PBoC’s yuan and can be used without a mobile or internet network, to ensure that transactions can continue even in the event of poor network connections.
What is more, the digital coin will be able to be transferred between users without an account, the report cites Mu as saying. Provided a user’s mobile phone has a wallet, the token can be transferred to another person by placing the two phones in physical contact.
The official further said the development of the digital currency would help protect the country's foreign exchange sovereignty as even as numerous commercial applications of digital currencies expand:
“Why is the central bank still doing such a digital currency today when electronic payment methods are so developed?, said Mu. It is to protect our monetary sovereignty and legal currency status. We need to plan ahead for a rainy day.”
The anticipated national digital currency will aim to offer provisions for anonymous payments while preventing money laundering, that's according to Mu. He further highlighted that while the cryptocurrency would mirror FaceBook Libra, it would not be a direct copy.
Chinese cryptocurrency could launch early in November
Just last month, the PBoC revealed that the digital currency is ready to launch after five years of development. However, the token will not rely completely on a blockchain, as this would prevent the currency from achieving the throughput required for retail usage, Mu said at the time.
As per the Hong Kong Economic Journal, the token could launch as early as November 11 which is sooner than Facebook’s Libra. Even as Libra faces regulatory scrutiny, perhaps hindering its launch, Apple’s executive has this week hinted that Apple believes that cryptocurrency has long-term potential.
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