Facebook’s proposed cryptocurrency, Libra, has come under increasing regulatory scrutiny and even outright opposition from countries around the world.
However, Changchuan Mu, the new director of China’s Research Institute on Digital Currency, said the token might prove to be “unstoppable” once it is introduced to the market.
According to a report by CoinDesk, Mu addressed the issue of Libra during a series of talks, covering everything from the crypto’s proposed technical specifications to its potential in global finance. He revealed that it would be very difficult for regulators to stop people from using Libra.
“No countries welcome Libra, but it might be unstoppable anyways,” stated Mu. “It is very unlikely that one can totally stop people from buying Libra despite rigorous regulations.”
To prevent people from using the crypto, regulators could possibly require banks and financial institutions to deny Libra-related transactions. Still, Mu said there would be other back channels for users to access the crypto, citing underground Bitcoin trading in China.
“Even if Facebook is blocked in China, people will use indirect ways to purchase it from abroad once Libra comes out,” he said.
Mu added that if the U.S. does not issue an outright ban on Libra, and regulators in other countries allow for the crypto to be traded, it is very likely that Libra will grow into a major international currency.
He underlined the importance of China establishing its national digital currency first to ensure its monetary sovereignty.
“We need to defend our monetary sovereignty and currency, repair the roof before a rainy day.”
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