American Banker: Does the US Need an Ally Like Libra to Take on China's Digital Currency Growth

    Facebook's Libra cryptocurrency may need to be supported more by legal bodies and banks to keep up with China's digital currency electronic payment innovation and initiatives.

    Facebook's universal digital currency project Libra might be at the receiving end of regulators and governments around the globe, but looking at China's accurate adoption of blockchain technology and the slated launch of its central bank-issued digital currency (CBDC) by the end of this year, the US might need an ally like Libra to help it maintains its financial superiority in the world market.

    China's ability to adapt and its massive workforce combined with a streamlined form of centralized governance give it an advantage over other, and this is the reason despite being indifferent to cryptocurrencies in the last couple of years, the launch of digital yuan would definitely give it an upper hand on other nations.

    Facebook's CEO warned about the same during his recent appearance before the House Finance Committee where he claimed that if Libra is not given necessary regulatory clearance for its scheduled launch in 2020, someone else would point upon this opportunity without the regulatory activity that they are facing.

    He said,

    “A digital payment system is going to be important in the future. If America doesn’t lead on this, others will. Foreign companies or countries may act without the same regulatory oversight or commitment to transparency that we have.”

    Regulators and policymakers have been going hard at Facebook' libra for its centralized working model and have claimed that giving a green light could devalue the US dollar in the international trade market and pose a threat to economic sovereignty.

    Facebook's troubled past and mishandling of data has proven to be an Achilles heel as many senators have continuously pointed towards the fact that Facebook has been a serial offender in breaching user policy and mishandling private data.

    Others have argued that only the state has the right to offer money, and thus giving that power in the hands of a private company does not sound like a great idea.

    China Is Acting Fast and other Countries might be Left behind by Year's

    Although most of the concerns raised by the regulators are valid, it is important to note that there is an ongoing tussle over the throne of becoming the leading superpower state of the world. The US has been the leader for decades, but as we head towards the 22nd century, China is more than equipped to take that position.

    The dominance of the US dollar in the international trade market allowed the US to maintain supremacy over other states with the power to implement sanctions. As we move towards a digital financial future, many countries have already started to experiment with a CBDC to avoid such sanctions.

    China will become the first country to issue a CBDC and with its technological supremacy and dominance it might peg the US to take the throne away if they don't act fast on it, Libra might be flawed in many ways, but there is no denying that with over a 1 billion user base on Facebook and several million on WhatsApp, Instagram, and Messenger, it could very well be the trump card to compete against China.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Rebecca Asseh
    Rebecca Asseh
    Rebecca Asseh is a blockchain and cryptocurrency journalist fascinated with sharing the knowledge of this technology in the simplest language possible.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    44% Think Bitcoin's in a Bull Market & Alt-Season Will Occur in 2020: Kraken Survey

    In the currently unstable environment where industries are laying off, cryptocurrency exchange Kraken is on a hiring spree as it moves ahead to expand...

    Bitmain Releases Antminer E3 Firmware Update to Keep It Mining ETH Till October

    Mining hardware firm, Bitmain, set to extend the durability of its once “most powerful Ethash miner” from April to October 2020. The mining firm...

    Tether Prints over a Billion USDT in March, Rising Demand or Exchange Run?

    We are about to end March, a month that saw the price of bitcoin hitting $3,850 and ready to end the quarter with over...

    Bitcoin Beating Gold But What will Hold its Value Better in Five Years?

    The price of bitcoin is currently trading in the green by 2.34% as it trades around $6,450. Although down 11.89% YTD and about 34%...

    Lightning Labs New LSAT Protocol Promises To Do Away With Usernames And Passwords

    A statement from Lightning Labs CTO, Olaoluwa Osuntokun, revealed the specs of the Lightning Service Authentication Tokens (LSAT) which is expected to act as...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.