As Facebook’s Libra Faces Headwinds, China Is Racing to Launch Its Own Global Cryptocurrency
By Kate Rooney
Facebook’s cryptocurrency plans looked shaky this week after a handful of high-profile members bowed out of the project. But while Libra slowly gets off the ground, China is looking to launch an alternative.
The People’s Bank of China announced earlier this year that it was working on a digital currency backed by the yuan, reportedly inspired by Facebook’s announcement. Analysts and crypto industry leaders are highlighting geopolitical implications of China launching a digital currency first — especially if Libra hits a brick wall with U.S. regulators.
“China has been incredibly strategic about how they think about cryptocurrency,” Brad Garlinghouse, CEO of Ripple, told CNBC in a phone interview. “They have been dependent on the U.S. dollar as the global reserve currency — to the extent that other currencies emerge, and they can help propagate those, they’re intrigued by that.”
Photo courtesy of faungg’s photos.