China’s Crypto Will Protect The Chinese Monetary Sovereignty

China’s crypto will have many similarities to Facebook’s crypto project and it is aimed to protect China’s monetary sovereignty according to a superior from the China Central bank as we are reading further in the altcoin news below.

Underlying the many key attributes that China’s crypto and central bank digital currency will have, the deputy director Mu Changchun of the People’s Bank of China’s payments department explained upon the emerging cryptocurrency. Mu noted that the CBDC will encompass a few characteristics of Facebook’s Libra and these include interoperability across major Chinese payment platforms such as Alibaba and Alipay. The CBDCs themselves will reportedly be as safe as bank-issued and will propose the benefit of working without any connection to the internet. Mu explained further:

 “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.”

Mu also remarked that the central bank digital currencies will attempt to balance between the anonymity and anti-money laundering prevention saying that the cryptocurrency will have the similarities to Libra but they will not copy it entirely. The comparisons to the Libra crypto project are not surprising. China has been looking into the possibility of a sovereign digital currency since 2014 in order to minimize the cost of monetary circulation. It was the apparent threat that was posed by Libra which truly started the clock ticking. According to Binance Research, China’s rush to the market is because of the potential menace of Libra on capital outflow which is something that continues to endanger China’s economy. The researchers also noted their concerns involving the individual financial privacy and they stated:

‘’Unlike privacy coins, central authorities would be able to gather information. Eventually, identities would likely be tied to respective individual wallets, hence making it fully non-anonymous, unlike Bitcoin.’’

As per the recent reports that we had in our latest cryptocurrency news, China was about to crush Facebook by launching its cryptocurrency as early as November 11 this year. However, the claim has since been debunked by the People’s Bank of China.