In June 2019, Facebook has announced that the development of the Libra token has been an important milestone for the cryptosphere, showing greater public awareness of virtual currencies while prompting regulators worldwide to seriously consider the technology’s implications.
The social media giant, Facebook’s announcement is also seen as having awakened China’s development of a state-backed cryptocurrency, in order to beat Libra to market.
China Makes a Move to Save Monetary Sovereignty
It has been reported that according to Financial News Now, an official at the People’s Bank of China (PBOC) on September 6, 2019, said that the key purpose of developing the national digital currency is to “plan ahead” in order to “protect monetary sovereignty and China’s legal currency.”
Once the National Currency is made digital, it could easily increase widespread use for online transactions, putting the RMB in direct competition with the US dollar.
It has also been revealed that Changchun Mu, the new Chief of China’s Digital Currency Research Institute and Former Deputy Director of the Payments and Settlement Division at the People’s Bank of China (PBOC), said that the currency will be ready for launch in a short time.
Chinese Government Shows Keen Interest in Crypto
As it seems that China is now only raising up the development of its digital currency, Chinese authorities have monitored the blockchain and crypto landscape for years, and the digital currency project was initiated as early as 2014.
However, China’s keen interest in cryptocurrency declares that the Asian superpower fully understands the value of digital assets and it’s possibility for the economy in the future.