People’s Bank of China will accelerate the creation of its own cryptocurrency in anticipation of the launch of Libra

Facebook’s cryptocurrency initiative may push the People’s Bank of China (PBoC) to speed up the creation of its own digital currency. This was stated by the head of the research division of the Chinese Central Bank, Wang Xin, reports the South China Morning Post.

Xin believes that the risks that Libra carries for the traditional financial system will force regulators to devote far more resources and forces to the development of their cryptocurrency.

“If Libra is widely used for cross-border payments and functions as money, it will have a big impact on monetary policy, financial stability and the international monetary system,” said Wang Xin.“If Libra is widely used for cross-border payments and functions as money, it will have a big impact on monetary policy, financial stability and the international monetary system,” said Wang Xin.

In particular, China is concerned about what currencies Libra will be provided with and what role the US dollar will play in this.

“In essence, there will be one“ boss ”- this is the American dollar and the United States. If this is true, it will lead to a number of economic, financial and even international political consequences, ”Xin warned.

Xin said that PBoC was one of the first central banks to start exploring the possibility of creating its own digital currency.

“We started early, but it will take a lot of work to establish our leadership in this matter,” said a representative of the People’s Bank of China. “We started early, but it will take a lot of work to establish our leadership in this matter,” said a representative of People’s Bank Of china.

He also confirmed that the central bank has already received the approval of the authorities for the creation by the central bank of its cryptocurrency, but it is not known at what stage it is being developed.

It is worth noting that the People’s Bank of China is already demonstrating progress in working with blockchain technologies. For example, a central bank platform based on distributed registry technology processed foreign exchange transactions worth more than 30 billion yuan ($ 4.36 billion).

Recall, for the first time, representatives of the People’s Bank of China announced plans to create their own cryptocurrency back in 2016.

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