The limits in the tech world and more so, in the world of cryptocurrency is not something familiar to China. This is because of the country’s new plan to have a national digital currency with the goal of expanding further into financial technology.
The system that is set to be the most advanced cryptocurrency released to date will open up the world’s largest domestic market to the technology.
As described by a senior Chinese bank officer, the currency will help protect the nation’s foreign exchange independence. This is as the technology continues to advance and grow with more use cases being realised.
But some might question why China would opt for a digital currency now when electronic payment methods are so advanced.
It is to protect our monetary sovereignty and legal currency status. We need to plan ahead for a rainy day.
The Chinese government plans to have the cryptocurrency’s tokens as secure as the Central bank-released paper bills. This means it could even be used without an internet connection. China’s own is set to have several similarities with Libra. This is considering it will work across existing payment platforms such as WeChat and Alipay.
But considering how troubled Libra has been lately, perhaps the people of China will have a better alternative to use as a “cryptocurrency”.
On the other hand, Facebook is set to launch both Libra and its Calibra digital wallet next year. But it has been tight-lipped on what form both offerings will actually take. It has said it won’t launch Libra until all of the regulatory issues are addressed.