China’s cryptocurrency to resemble Facebook’s Libra-Not a direct copy

• PBOC intends to have the digital asset launched on WeChat, Alipay, Alibaba, and other online platforms.
• The digital tokens will function even without an internet connection.

China continues to make headlines for the ambitious own cryptocurrency project. The said digital asset will be issued by the People’s Bank of China (PBOC) and will have similarities with Libra, the proposed digital asset by Facebook. The government intends to have the digital asset launched on WeChat, Alipay, Alibaba, and other online platforms.

According to the deputy director of PBOC Mu Changchun, the digital asset will ensure the sovereignty of China’s foreign exchange is guarded.

“Why is the central bank still doing such a digital currency today when electronic payment methods are so developed?” Mu asked lecture he gave earlier this week.

“It is to protect our monetary sovereignty and legal currency status. We need to plan ahead for a rainy day,” he continued.

China’s digital currency will have the security of bank-issued notes. Moreover, the tokens will work even without an internet connection. Mu adds that the token will have some resemblance with Libra although do not expect it to be a direct copy.

On the other hand, Facebook continues to struggle with regulatory concerns. Regulators say that Facebook could rise to financial dominance and could easily be a conduit for money laundering. Consequently, Facebook is acting fast by hiring top lobbyists to seek approval to go ahead with the project’s launch.