Facebook’s announcement in June 2019 regarding the development of the Libra token has been an important milestone for the cryptosphere, marking greater public awareness of virtual currencies while prompting regulators worldwide to seriously consider the technology’s implications.
The social media giant’s announcement is also seen as having galvanized China’s development of a state-backed cryptocurrency, in order to beat Libra to market.
According to Financial News Now, an official at the People’s Bank of China (PBoC) on September 6th said the key purpose of developing the national digital currency is to “plan ahead” in order to “protect monetary sovereignty and China’s legal currency.”
Once the national currency is made digital, it could easily gain widespread use for online transactions, putting the RMB in direct competition with the US dollar.
CoinDesk revealed that Changchun Mu, the new chief of China’s Digital Currency Research Institute and former deputy director of the payments and settlement division at the People’s Bank of China (PBOC), said the currency will be ready for launch in a short time.
While it seems as though China is only now ramping up development of its digital currency, Chinese authorities have monitored the blockchain and crypto landscape for years, and the digital currency project was initiated as early as 2014.
China’s keen interest in cryptocurrency reveals that the Asian superpower fully understand the value of digital assets and its potential for the economy in the future.
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