An official statement released after the grand meeting of finance groups of china that clearly give the clue about its upcoming cryptocurrency.
Recently, news of Libra digital asset spread like a fire in the markets of the crypto world. It was supposed that Libra is an American digital asset as it belongs to Facebook, which is based in America so it will back the American dollars. China is a bulky economy against the American economy and they will not bow down American-based digital assets.
China was on the way to ban on cryptocurrency from some last years but this news came as a surprise and startled everyone.
PBOC and Cryptocurrency
Mu Changchun, Deputy Director at People’s Bank of China (PBOC), the central bank of the Republic China confirmed this news to local bankers about its coming fiat digital currency. The system will entirely depend on the decentralized ledgers as these big banks need high speed.
The important thing about this structure of digital currency is that it has two layers of control. The upper or main layer will be controlled by the People’s Bank of China (PBOC) and the lower layer will be managed by retail banks.
Cryptocurrency will have Manipulative Power on Bitcoin
The emergence of this digital asset will reduce the significance and importance of Bitcoin as it will catch the attention of big whales in the markets of cryptocurrency. The autonomy of Bitcoin will be minimized with the emergence of Central Bank Digital Currencies CBDC) and finance analysts are giving their eye-opening analysis.
Nouriel Roubini, a university professor of New York University who is notorious for his hatred towards bitcoin again expressed his hatred towards bitcoin with the emergence of Chinese’s cryptocurrency. He remarked that the door will close on crypto scammers with the rise of CBDCs.
CBDCs [are] likely [going to] replace all private digital payment systems. CBDCs are efficient and cost-effective and allowing any individual to make transactions through the central bank. CBDCs would upend this arrangement, alleviating the need for cash, traditional bank accounts, and even digital payment services.
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