The People’s Bank of China (PBOC) is “close” to releasing its own cryptocurrency, says Mu Changchun, deputy director of PBOC’s payments department.
The move is aimed at asserting state control of digital currencies. It will replace cash in circulation instead of generating credit.
Central banks and politicians worldwide have been critical of Mark Zuckerberg’s intent to launch Libra, a global digital currency. If Facebook follows through, it will alter the world of finance for billions of people.
Though Libra is unlike volatile Bitcoin, in that it would be managed centrally, it would be built directly into some of the most globally popular apps, including Facebook, WhatsApp, and Instagram…all owned by Facebook Inc.
But what is ruffling politicians and banks the most is that Facebook’s move puts the company in a “government-like role, creating a currency and perhaps even setting monetary policy,” Bloomberg reports.