Regional Asian Stablecoin Could Pose A Threat To Libra

The new regional Asian stablecoin, aimed to win the Korean, Japanese, and Chinese market, could pose a threat to Libra according to the analysts and in our latest Libra news today we find out why.

Facebook created the concept of a basketcoin last year or more specifically, a stablecoin backed by multiple assets rather than just one. Since then, Facebook and the other members of the Libra Association have backed away from the plans of a basketcoin product. The retreat came after the many regulatory issues and governments that made it clear they will not accept Facebook launching a cryptocurrency of the world. The retreat also paved the way for another institution to use it as an advantage and to launch a central bank digital currency and the institution that had this in mind was of course, the

The Chinese People’s Political Consultative Conference is not really keen on meeting the US Senate or the UK House of Lords. During the latest session, Neil Shen, the founding partner of Sequoia Capital China and the member of the CPPCC joined to call for the creation of a PBoC-backed stablecoin. Shen suggested the new digital currency will be backed by the reverse of the Chinese yuan, the Japanese yen, and the Korean won. The basketcoin reserves will be weighted according to the performance of the economies.

Shen and his peers suggested that the new digital currency will be weighted according to the performance of the economies of South Korea, Japan, China, and Hong Kong. The initiative proposers explained that the digital currency will spur trade and will optimize cross-border payments between the nations and they expect a launch in coordination with Hong Kong Monetary Authority and the regulatory sandbox that is aimed at enhancing related innovations. It’s possible that this basketcoin proposal doesn’t move further from the Chinese offices but it does show once again that digital currencies are becoming a mainstream topic again.

This regional Asian stablecoin could pose a risk to Libra. Facebook does have a global reach which is why Libra was denied from the regulators. The analyst in the crypto economy was not surprised when the Libra Association published the updated version of the whitepaper for the first time. The Libra Association said:

 “Under this change, ≋LBR will simply be a digital composite of some of the single-currency stablecoins available on the Libra network.’’