Chinese Companies Won’t Follow Facebook’s Crypto Adventure

Chinese companies especially the payment giants will not follow Facebook into the crypto adventure anytime soon. Why you ask? We will find out in the latest cryptocurrency news below.

The internet giants of China including the CEO of Tencent-the parent company of the social messaging giant app WeChat says that he thinks regulation will be the most important factor for the success of the social media giant’s cryptocurrency-Libra:

 “The technology [of Facebook] is already mature enough so it’s not difficult [to implement]. Now it just depends on whether it can obtain regulatory approval.’’

Tencent did not comment any further on the issue but stated that the CEO made a remark back in 2018 that the company’s stance on cryptocurrency is:

 “The greatness of blockchain technology depends on how it’s used. Issuing initial coin offerings or digital currencies still bear too much risks … Tencent will not issue a coin and does not consider to be involved in that.”

Some of the other Chinese companies including the Ant Financial and the CEO Eric Jing noted that the company has already declared back in 2018 that they would stay away from digital currencies and will mainly focus on blockchain technology. While Ant Financial that operates AliPay is successfully expanding overseas, it is using a conventional strategy of partnering with multiple regional payment providers rather than issuing its own cryptocurrency. The reason why the payment Chinse companies are not considering crypto as useful, mainly focus on the regulatory issues since the country’s central bank banned crypto offerings back in 2017.

The vice president of the Chinese Software Developer Network Yan Meng who is focusing on token economic research says that Facebook’s user base across the world leaves no other option than to borrow ideas from blockchain and crypto in order to get as far as possible from the traditional way for launching a global payments network. He said:

 “Facebook just can’t do a global payments network via traditional methods, which require applying for a license and preparing foreign exchange reserves with local banking, one market after another.’’

As noted in some of the best cryptocurrency news sites, the People’s Bank of China reported that the country reached a $41.51 trillion in mobile payments in 2018 alone and AliPay accounted for more than 90% alongside WeChat Pay.