China will soon test its own cryptocurrency for financial sovereignty

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BEIJING – The People’s Bank of China has stepped up efforts to launch its own cryptocurrency with the goal of gaining leadership before other central banks in the world.

In addition, the Asian giant intends to maintain its financial sovereignty and is planning to conduct a series of tests with the system called Digital Currency Electronic Payment (DCEP) in some cities of the country, reports The Global Times.

The tests will be attended by some of the largest banks in the country and telecom operators, and should be expanded next year. In addition to banks, e-commerce giants such as Alibaba and Tencent will also participate in the tests.

Next year, there will likely be greater competition between digital currencies not just from central banks, but also between multinationals like Facebook and major international financial institutions, according to Cao Yin, deputy director of the Blockchain Advanced Research Institute.

According to the expert, the People’s Bank of China accelerated its digital currency project after Facebook announced its plans to launch its digital currency, the Libra, which is supported by approximately 2.7 million users, and has independence from all. financial institutions, which could trigger a threat to the flow of financial capital.

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“China needs to have equivalent ‘monetary instruments’ to consolidate its financial sovereignty,” said Cao.

Earlier, a senior Chinese central bank official said the digital currency will bear some resemblance to Facebook’s cryptocurrency. China’s digital currency should help protect the country’s sovereignty, be as secure as central bank notes and can be used even when offline, and counter money laundering.

Meanwhile, Facebook’s digital currency, called the Pound, is important for extending US financial leadership, says Mark Zuckerberg.

The Facebook CEO’s analysis is in a speech he will make in a US House committee and was obtained by the AFP news agency.

The Facebook founder’s speech comes amid intense scrutiny from regulators and legislators around the world who express skepticism about the impact of the cryptocurrency proposal .

Zuckerberg acknowledges that Facebook’s privacy and data protection errors have led many to conclude that they are not the ideal messenger at the moment” for digital currency, but argues that the plan would be beneficial to many people, including those outside the system.

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