Chinese Official Libra
Chinese Official Warns Libra Could Assist Illegal Cross-Border Transfers
October 29, 2019
Chinese Official Libra
Chinese Official Warns Libra Could Assist Illegal Cross-Border Transfers
October 29, 2019

A senior Chinese regulator said on October 28, that Libra must abide by international foreign exchange regulations or “it should be banned.”

According to a report by Reuters, Sun Tianqi, the Chief Accountant of China’s State Administration of Foreign Exchange (SAFE), made the comments in an address to the Bund Summit in Shanghai.

Sun called upon emerging market governments to consider curbing Libra’s advance, especially if the stablecoin project would threaten a state’s capital controls or enable illegal transfers.

Sun said:

“Financial technology can promote the opening up, innovation and development of a country’s financial market, but it could also bring a lot of illegal cross-border financial activities. This should be a matter of great concern to all countries, especially emerging markets.”

Sun Tianqi

Likewise, Sun’s concern lies with a foreign digital currency supplanting the yuan in domestic transactions, which would limit the state’s ability to enforce capital controls and foreign exchange management. 

Currently, the People’s Bank of China (PBoC) exerts downward pressure on the yuan, weakening it against other major currencies in order to boost exports.

However, the comments are in line with public statements from other Chinese regulatory officials on the controversial Facebook-led initiative.

ALSO READ :  Starbucks To Trace The Origins Of Its Coffee Using Microsoft's Blockchain Solution

In July 2019, Zhou Xiaochuan, the former Governor of the People’s Bank of China said that Libra poses a threat to payment systems and national currencies. On the other hand, Wang Xin, the Head of the Research Bureau at the PBoC, said that Facebook’s venture has spurred the development of China’s “digital yuan,” which was initially proposed in 2014.

On October 25 (Friday), President Xi said to “seize the opportunity” afforded by blockchain.

Thus, a recent registration list published by the Cyberspace Administration of China shows that the development of blockchain applications in China is advancing quickly, with more than 500 enterprise projects already underway.

Source: reuters.com | coindesk.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. She is an archetypal writer, who loves to create her own little world with words and locutions. Apart from this, her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!