There are new details about the digital currency that China plans to launch. According to Reuters, a Chinese government official said China’s central bank is currently working on the development of the cryptocurrency, which will be very similar to Facebook’s Libra.
It’s worth recalling that last month, Mu Changchun, deputy director of the payment department of the People’s Bank of China, announced that the official digital currency of the Asian country was “almost ready.”
Even though few details are known about this digital currency, it’s speculated that it will be linked to a conventional currency to maintain its value, in the same way as Libra. While Facebook’s cryptocurrency will be linked to conventional currencies such as the euro and the dollar, China’s digital currency will be tied to the Yuan.
According to Mu, this cryptocurrency was designed with the objective of “protecting China’s monetary sovereignty and the legal state of the currency.” Also, he said that this digital currency can be used in the main Chinese messaging platforms, such as AliPay and WeChat. This is another aspect that resembles Libra, which is designed to be used on Facebook’s messaging products.
China’s digital currency could be issued by both China’s central bank and commercial financial institutions. Besides, “it would strike a balance between anonymous payments and preventing money laundering,” according to Mu’s statements.