The central bank executives of China have confirmed that the forthcoming digital currency of the country will be similar to most talked about cryptocurrency of Facebook, Libra. The news was reported by the English language journal of China, Shanghai Securities News on September 6.
The senior central bank official has declared that the proposed coin will be accepted by significant payment platforms like WeChat and Alipay. The deputy director of the payment department of People bank, Mu Changchun has declared that the commercial application of such currencies is expanding, so the development of such coin will protect the sovereignty of foreign exchange of the country.
The Central Bank will circulate the proposed digital currency so it will be as safe as the paper notes published by PBoC. It is also said that the aforementioned digital currency can also be used without any internet connections so that the transaction can happen even when the internet connection is down.
Mu further said the forthcoming digital currency aims to provide anonymity to the transaction at the same time will prevent money laundering. He also explained that the virtual currency is said to be similar to Libra, but it will not be a carbon copy of it.
He previously mentioned that the organizational structure of the currency would be, to some extent, similar to Libra as the design has got somewhat inclined to it.
The Central Bank’s research team has been working to explore the scope of digital currency, to cut the cost for circulating paper money and also to enhance the control of policymakers on the money supply.
Previously Mu announced that the digital currency was almost ready and, the US-based Forbes magazine also reported it might get launched by November this year, which is significantly earlier than Libra.
The digital currency of China may not use blockchain technology as used by almost all the major cryptocurrencies. It will be pegged to the national currency of the country Yuan.
Facebook announced about their digital currency Libra in June since then it has invited controversies. The US authorities are worried that Libra can ignite money laundering and terror financing. They also say that Libra should not be trusted. The political data company Cambridge Analytica had also reported that Facebook used personal information of millions of American without their consent. For that, FTC has penalized Facebook $5 billion, which is highest in history.