The Libra currency is everything that an economy would want. This digital currency is stable and reliable because its value will be backed by currencies and securities. With its hard asset reserves, it can dominate both international financial systems and the digital economy.
It will be the dollars ‘vehicle’ to conquer the digital global economy, where it lacked a strong foothold in the past. To say that Libra has the potential to dominate is an understatement. It will, and it’s only a matter of time.
With all these facts, China has all the reason to worry — and to take countermeasures.
If China would sit idle for too long, the Red Dragon state would suffer as a passive player in this field. This thing will surely be the last thing that China wants to happen. That is if they would even want that to happen. China can strongly respond to these trends by making their own version of Facebook’s Libra through their giant internet companies.
China’s Digital Currency
China has a history of cracking down on major digital currencies. With that harsh initiative, the excitement of investors over these digital currencies has waned down. But now, why is China giving into this digital currency trend in the first place?
They will indeed make their own version of digital currency, but with one exception: they will overturn its very nature. It will adapt to China’s nature.
Their version of cryptocurrency will surely be in line with its iron-hand financial measures: Holistic and controlled. Above all, this crypto currency will be associated with their Petro Yuan, just like how dollars is associated with Libra.
China will certainly expand on the digital currency plane. It cannot afford to be left behind.
With this, digital currencies Bitcoin, ETH, and XRP will be left out without any reason but to rally stronger.
Also read: Libra and Bitcoin: Which One Will Gain a Million Likes?
