A former senior congressional official said China's central bank would probably be the first to issue its own national digital currency, saying Libya was doomed to fail.
Speaking at the Bund Summit in Shanghai, Huang Qifan, former deputy director of the Congress's Financial and Economic Affairs Committee, explained how the national currency could affect the global financial market, according to a press report Chinese.
"I think that the technology is maturing and that it is very likely that China's central bank will be the first to issue a national digital currency."
In his speech, Huang said that the best way to fight against stable coins issued by private companies such as Facebook's Libra is to let governments and central banks issue a country's digital currency.
"Personally, I do not think Libra will succeed," he said. "Some companies are trying to challenge the sovereign currency by issuing bitcoin or Libra. Blockchain-based decentralized currencies are not supported by sovereign credit and have a hard time becoming true wealth. "
The long-time economics expert made comments after Chinese President Xi Jinping announced he would promote the country's block program as well as a new cryptography law that could pave the way for the launch of the currency. national digital.
The People's Bank of China began conducting cryptocurrency research in 2014 and aims to develop its national digital electronic payment system (DCEP) in digital currency through the Institute for Research on Digital Currency created in June. 2017.
Although Chinese officials said that the DCEP was not a copy of Facebook's Balance, the central bank compared its national stability bulletin with Libra in many official documents.
The central bank appointed in September the former deputy director of payment systems Changchun Mu at the head of the research institute to accelerate the development of the DCEP. This decision comes three months after Facebook's official announcement of its Libra initiative.
Huang said he also envisioned that the value of the DCEP is tied to the country's credit, gold reserve, fiscal income and gross domestic product.
China is now one of the many major economies that are exploring a national cryptocurrency and support blockchain technologies, according to Huang.
"Twenty-four countries are currently developing general led book technology through more than 90 multinational companies," Huang said.
The EU, Japan and Russia are trying to set up international cryptocurrency payment networks to replace the global interbank financial telecommunication company (SWIFT), a global financial institution facilitating cross-border transactions.
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