More

    Tencent, Who Owns WeChat, Considers Libra a Real Risk for Alipay and Wechat Pay

    China's Internet mogul Tencent, owner of WeChat messaging app, thinks Facebook's Libra launch will pose as a serious threat towards digital asset payment systems.

    The Chinese Internet Giant and father of Wechat, Tencent, had made its current opinion of Libra clear. They stated that Facebook’s budding cryptocurrency represents a severe risk to already established systems for digital payment.

    Last week, Tencent released a blockchain whitepaper written in Chinese. Within it, Tencent described Libra as something that looked radical and bold but described it as a rational, prudent move from Facebook.

    The whitepaper went on. It stated that Facebook’s Libra coin had the potential to win market shares at a fast pace, especially within countries that don’t hold a credible local currency. It’ll grow in places that lack financial infrastructure as well, the whitepaper said. However, it warned that Libra would be in direct opposition against Chinese companies who could not replicate a blockchain.

    The whitepaper explicitly reads that any internet company with a relatively matured system that facilitates digital payment will be threatened by Libra. The whitepaper cites AliPay and WeChat Pay as examples of these companies. What’s important to note is it's expression of “should it ever launch,” implying that Tencent doesn’t believe for certain that the cryptocurrency will launch. AN understandable sentiment, considering Libra’s trying times.

    The Chinese Central Bank has made it no secret that they’re working on their digital currency for more than a few years now. While they’re doing this, however, they’ve taken the liberty to ban any form of fiat-to-crypto trades in the country since 2017.

    As is the way China operates, Alibaba and Tencent, who owns Alipay and WeChat pay respectively, have no known trading or cryptocurrency project under their name to exemplify this. Behind closed doors, both the Chinese government and the internet giants themselves can have different things to say about the matter.

    WeChat gave an official post on Weibo, which Dovey Wan, a founding member of South Korea’s PrimitiveCrypto, shared on twitter,

    Alipay stated more or less the same, with a more pointed warning against trading in tweet,

    It was probably aimed at Binance, who had enabled over-the-counter trading on their exchange. This, in turn, would allow Chinese users to trade in crypto assets, using a counterparty and settling payments with Alipay’s P2P transaction service. Alipay, in turn, warned that it would stop any relevant payment service if they detect crypto trading activity.

    Crypto is not Blockchain

    As both these company groups have made it very clear that they aren’t doing anything related to cryptocurrency, they’re practically pouring money into efforts related to blockchain.

    Tencent, the parent company of WeChat, is already well known for the suite of blockchain-based services it provides since they released their very first whitepaper back in 2017.

    The Alibaba Group, the parent of Alipay, actually holds the top position with a grand total of 90 patent applications, all focused on blockchain-related technology. That’s even more than IBM, Bank of America, and Mastercard.

    Tencent’s whitepaper stated that Libra’s launch, should it happen, would irreversibly affect the global expansion of digital payment companies. This is especially true if they didn’t sign up for the Libra consortium.

    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.

    Ali Raza
    Ali Raza
    A freelance journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali's work has been published on a number of cryptocurrency publications.

    [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

    3,262FansLike
    2,712FollowersFollow
    4,095FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Venezuela Pres. Maduro Still Trying to Promote Petro With International Crypto Casino Launch

    Nicolas Maduro has at long last authorized the opening of an International Casino in a luxurious Hotel, in the city of Caracas. The casino...

    Despite Swiss Regulators Saying Libra ‘Has Failed' They Might Still Be Open To Its Launch

    The Swiss government is spooked by concerns on the sustainability of FaceBook's Libra as a global currency. This adds to regulatory concerns raised by...

    Ripple, Coinbase Invested Bitso Is Hiring A Country Manager For Its Brazil Expansion

    The Mexican crypto exchange is hiring for its expansion into the Brazilian market The new position has to “create, iterate and scale crypto-powered...

    Reserve Bank of India: Crypto's Not Banned, But Ringfenced Regulated Entities Due to Risks

    In response to a petition filed by the IAMAI over RBI’s decision to not allow regulated entities like banks to deal in cryptos,...

    Crypto Bulls Definitely on Parade, Bitcoin Is Attracting ‘Very Substantial Buying Power'

    After 2019’s choppy recovery, the crypto market is now “launching what could be a far more sustainable bull market” Mid-cap cryptos showing more...

    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.