- Facebook announced its crypto with the nonprofit Switzerland-based Libra Association.
- China proposed to use its digital currencies for major payment platforms including in Alipay and WeChat.
From the time of the announcement, Facebook Libra Cryptocurrency faced criticism from experts. The People’s Bank of China has started to build its digital currency (Digital Yuan) from the starting of the previous year. Yuan backed the project.
Till date, China is dependent on the U.S. dollar. But after emerging of other currencies, China decided to help the propagation of these currencies. For this reason, China was very strategic about their digital currency. China proposed to use its digital currencies for major payment platforms including in Alipay and WeChat.
Facebook announced its crypto with the nonprofit Switzerland-based Libra Association. The coin is a stable coin. The value of the coin is connected to an underlying currency similar to the dollar. The currency is pegged to yen, euro and U.S. dollar. However, the development process of Libra received resistance from former lawmakers and industry insiders, global regulators and senior congressional finance committee members. They also raised questions about the risky ambition of Facebook.
Future Prospects for Libra and Digital Yuan
China will test Digital Yuan in four cities which are Shenzhen, Suzhou, Xiong’An and Chengdu. The pilot project will be based on a closed-circuit test. Hence, the project will not affect any commercial operations of the companies who will be involved in this. However, the official date has not been yet started.
On the other hand, criticism and long waiting time of Libra coin dishearten the people. Hence, no one knows when the new digital currency will come in the market or there will be a pilot test like Digital Yuan. Hence, Digital Yuan is a clear winner.
The only problem of Digital Yuan is the current loss of the corporate image of China due to the spreading of COVID-19. The next few months will be eventful and interesting for Digital Yuan.