Libra’s Trustworthiness Would Go Up if Ran by the IMF, Ex-Chinese Central Bank Governor Affirms

Zhou Xiaochuan, the former head of the People’s Bank of China, the local central bank, has recently affirmed that Facebook’s Libra stablecoin could be more trusted if was managed by an organization such as the International Monetary Fund (IMF) instead of the Libra Association. He spoke during the 10th Caixin Summit, which happened in Beijing this week.

The executive served as the bank’s governor from 2002 to 2018 and he believes that there are several implications of an international digital asset that is governed by a group of private firms instead of public entities.

By letting the system in the hands of international organizations, the process of handling the Libra would be much more transparent, as the motivations of private parties are not to be trusted. The Libra Association would certainly profit a lot from the project and there would be no way to know how the money is being used.

He suggested that the Libra could be a positive development in other scenarios, but that it letting a consortium of private companies be the ones ruling it was a big mistake.

Will China Be The First Country To Launch A CBDC?

China is among the countries which are most likely to launch the awaited version of a central bank digital currency (CBDC) soon. The project has been underway for years and it was accelerated now with the threats of the Libra being launched and causing financial troubles for China.

Mu Changchun, the deputy director of the People’s Bank of China, has recently revealed that the system will be centralized and use a two-tier system.

Get Daily Headlines

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

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide