The current Director of the Chinese Research Institute for Digital Currencies Exec, Changchuan Mu, has developed its own opinion on the launch of the stablecoin Pound on Facebook and the recently announced digital currency of the People's Bank of China (PBoC).
Furthermore, Mu compared Facebook's Libra asset with the PBoC digital currency, stating that the new Chinese currency is even better than the stablecoin of the popular Social Facebook in several respects.
But Libra is already unstoppable and will be highly successful among users.
Even if central banks actually can ask all their payment institutions and commercial banks not to process transactions related to the Libra stablecoin, it is likely that a "parallel" market will be created, which feeds the shadow economy.
This is what happened some time ago with Bitcoin, although the Chinese government has banned BTC trading.
Traders use le VPN to buy BTC from Exchange abroad and Changchuan Mu believes that the same thing would happen if Libra from Facebook were banned.
However, Mu states that there is still a particular scenario within which Libra could be stopped.
"If the United States legally bans Facebook's Libra, then the asset will certainly be stopped".
Will Libra destroy monetary sovereignty?
Is monetary sovereignty at risk? It is one of the hottest topics since Facebook announced the launch of Stablecoin Libra.
The monetary policy of each country allows central banks to control the supply and demand of their local currency.
How? Setting interest rates. For example, Libra could further weaken the local currencies of Thailand and Vietnam, which would lose control over interest rates and monetary policies.
Comparing the digital currency PBOC with Libra on Facebook, it emerged that the Chinese currency could help governments fight money laundering, tax evasion and terrorist financing.
The main purpose of the digital yuan is to remove cash and allow easier transfer of funds using the NFC technology (Near-Fiel Communication).
The launch of the PBoC asset
Even after a recent ban imposed on all ICOs and cryptocurrency exchanges in China, People's Bank of China (PBoC) has decided to launch its digital currency.
"What the central bank has in mind is a centralized digital currency", said Yao Qian, chief researcher of the Central Bank.
"This reflects the evolution of the currency: from barter to metallic coins, from paper banknotes to digital currency".
