David Marcus
David Marcus Says China Will Create A Digital Currency If US Rejects Libra
October 23, 2019
David Marcus
David Marcus Says China Will Create A Digital Currency If US Rejects Libra
October 23, 2019

David Marcus, the top Executive of Facebook on the Libra project, said that China will create a digital currency system that could be entirely out of reach for U.S. authorities.

According to an interview with Bloomberg News, Marcus warned that Washington risks “having a whole part of the world completely blocked from U.S. sanctions and protected from U.S. sanctions and having a new digital reserve currency.” 

Marcus said:

“The future in five years, if we don’t have a good answer, is basically China re-wiring” a large part of the world “with a digital renminbi running on their controlled blockchain.”

David Marcus

China has been stepping up its efforts to push forward with its Digital Currency Electronic Payment (DCEP) since Facebook unveiled its Libra project in June. 

Libra Creates Shadow Banking System

However, Chinese Central Bank officials have emphasized that one of the goals for China’s cryptocurrency is to acquire the rise of Libra that would reinforce the dollar dominance in the international financial system.

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While Libra would be grouped to a basket of fiat currencies, excluding China’s renminbi (currency), one of the five reserved fiat currencies is accepted by the International Monetary Fund (IMF) for international transactions.

China’s DCEP had been in the works, but the project’s development accelerated after Libra was announced.

Likewise, the People’s Bank of China (PBoC) appointed Mu Changchun to lead the Research Institute on Digital Currency in September and detailed a proposal to launch and distribute the national coin among major Chinese commercial banks.

Facebook’s crypto initiative has met with resistance from the U.S. Senate and the Federal Reserve since it was announced in June. 

Thus, five major partners, including PayPal, MasterCard, and Visa, withdrew their support this month due to the business and regulatory challenges.

Source: bloomberg.com | coindesk.com


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. 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.