Competition with Libra: China's crypto-money should also work offline
China intends to use its digital currency to forestall Facebook's planned crypto-gadget Libra - and announced its first details. The aim is also to secure the country's "monetary sovereignty".
China's digital currency should not be a direct copy of the Facebook announced cryptocurrency Libra. This was announced by the central bank's vice-director, Mu Changchun, according to the state-run newspaper "Shanghai Securites News".
According to Mu, the Chinese digital currency ensured China's "monetary sovereignty." The country must prepare itself for "bad times". The central bank manager also announced that the new cryptocurrency was as secure as the paper money issued by the central bank.
The US financial magazine "Forbes" recently reported that China wants to bring out its digital money on November 11, anticipating Facebook, which Libra will launch in the first half of 2020.
According to Mu, it is also possible to use the new currency without an internet connection. She was even in earthquake areas continue to be used when all other communication links have collapsed.
Facebook struggles with teething problems
The central bank PBOC plans to spread the new currency among other things over payment platforms of the Chinese Amazon competitor Alibaba, as well as the likewise domestic Internet company Tencent. About the technical details of the central bank vice.
While China is on the verge of completing its plans for its own digital currency, Facebook is still struggling with startup difficulties at Libra. These include rumors of discrepancies in the consortium that is supposed to control the currency.
Like other cryptocurrencies, Libra is based on Blockchain technology - a decentralized database designed to store transactions against counterfeiting. Just because of the potential number of users - about 2.4 billion people are registered on Facebook - Libra should play an important role in the international monetary system. However, politicians and financial experts are campaigning for state regulation.