A senior Chinese regulator, Sun Tianqi recently had his say on Facebook’s Libra project. According to the Chief Accountant of China’s State Administration of Foreign Exchange (SAFE), Libra needs to follow the same kind of law that other foreign currencies do or it will be banned from the country.
Mr Tianqi 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.”
Now, these comments came as we get more and more details about the state cryptocurrency that is set to be released by the Chinese government soon. Facebook has recently warned the Senate that the US must up its game in terms of digital assets are China are running ahead. Now, this could be a retaliation to Mr Zuckerberg’s comments to the US administration or SAFE could genuinely worried about Facebook’s borderless payment system.
His comments echo other experts, who are confirming in China Libra may not be welcome. Recently. Zhou Xiaochuan, a former governor for the People’s Bank of China, stated that projects such as the Libra would end up harming the Chinese economy and national payment systems. Wang Xin, head of research at the bank, was another figure that defended this idea.
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