More

    Proposed Chinese Digital Currency Set To Follow Comparable Traits To Facebook’s Libra

    The newly appointed Chinese head of digital currency claims that the digital yuan will have some comparable traits to Facebook’s Libra currency and the public will be able to use it within various Chinese payment platforms namely WeChat as well as Alipay CoinDesk reports.

    Mu Changchun, who is the current deputy director of Chinese Central Bank in charge of the payment department explained that the release of the digital coin will allow China to preserve its sovereignty in foreign exchange amid the explosion of digital currencies in the world.

    He said that the coin will help the country prepare in advance on what might happen in the future due to digital currencies.

    Mu also sought to clear any fears related to the safety of the digital coin saying that they will be offered by the central bank and individuals will be able to utilize them without the use of internet since they will be available in WeChat, Alipay as well as Tencent.

    Mu also explained some of the technical capabilities of digital yuan that cannot be found in Libra. He stated that people will not need to own bank accounts since the new currency will not be controlled by the conventional banking system. Mu also said that individuals using the digital currency will be able to maintain their privacy.

    Shanghai Securities News quotes Mu explaining that the new digital coin will be issued using the commercial financial institutions just as fiat currency. The financial institutions will be required to open accounts with the Chinese central bank and purchase the digital coin at 100 percent value. From there, the public will need to open digital wallets to store and withdraw the digital currency just like the way fiat money system operates.

    The explanation that the main aim of issuing the digital coin was to plan ahead as well as preserve the country’s financial sovereignty can be a hint that the announcement by Facebook that it was releasing Libra could have been the reason for the rapid interest in digital currency for a country that has always protected its financial system.

    CoinDesk reports that the former central bank governor Zhou Xiaochuan had in July explained that Libra is set to change the way global payment system works.

    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.

    Joseph Kibe
    Joseph Kibe
    Joseph is a blockchain and cryptocurrency enthusiast, with a strong conviction that exposure of blockchain technology is for the good of the society. Fascinated by the massive potential of cryptocurrencies and the technology behind them – blockchain – Joseph spent lots of his time learning more about the industry, becoming a polished expert writer in the sector. He covers any cryptocurrency and blockchain related content.

    [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

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,371FansLike
    2,778FollowersFollow
    4,141FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Coinbase Upgrades Wallet App to Simplify Crypto Transactions In A Bid to Boost Adoption

    Coinbase exchange has announced an upgrade of its digital wallet in a bid to make crypto transactions much easier. According to a blog post...

    Bitcoin’s Correlation with S&P 500 Jumps to A New High, But So Does With Gold

    Bitcoin’s correlation with both equity market and precious metal climbs to an at all-time high Bitcoin busted the myth that it can’t be...

    Former Olympic Wrestler and UFC Fighter Ben Askren Promotes Bitcoin With Twitter Handle

    UFC fighter Ben Askren changes his twitter handle to ‘Bitcoin Halving May 13 in a bid to promote to the BTC community with halving...

    Ether Price Undervalued But The Fundamentals Are Not Looking Good

    After a bad March, ETH price seeing greens, MVRV Ratio says ETH undervalued While Bitcoin active addresses on the rise, Eth’s declining but...

    Microsoft Joins Blockchain for Social Impact Coalition Initiative For Virtual Earth Day Hackathon

    Microsoft is set to support the Blockchain for Social Impact Coalition (BSIC) program whose winners will be rewarded during the Global Virtual Earth...

    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.