The new chief of China’s digital currency states, digital yuan has features not administered by Facebook Libra. China’s digital currency better than Facebook’s Libra claims New Chief.
According to reports from Shanghai Securities News, the former deputy director of the payments and settlement division at the People’s Bank of China (PBoC), Mr. Changchun Mu, recently moved to the Digital Currency Research Institute, in a leading role.
As per a state-operated media source, Mu recently published details about PBoC’s digital currency. The discussion apparently took place in a ‘secret office’, away from the bank’s Beijing headquarters. There the digital currency and electronic payment device had certain “value characteristics.”
Mu said that it allows users to protect their privacy when using the system and:
“Its functional attributes are the same as paper money, but it is just a digital form.”
He compared it with Facebook’s Libra when pointing out some of the digital currency’s technical features.
“Even Libra can’t do this.”
China’s digital currency better than Facebook’s Libra claims New Chief. Shanghai Securities News cites Mu as saying PBoC’s digital currency doesn’t need a bank account to be used and is “free from the control of the traditional bank account system.”
There was a clue that behind the sudden rush of development at the central bank is the advent of Facebook’s Libra. According to the report, the main reason for the development of digital currency is to protect monetary sovereignty. Also, China’s legal currency by “planning ahead”.
China should “make good preparations and make the Chinese yuan a stronger currency,” is what former People’s Bank of China (PBoC) administrator Zhou Xiaochuan said, because “Libra has introduced a concept that will impact the traditional cross-border business and payment system.”