In the era of widespread digitalization, internetization and other Hi-Tech in all sectors of human
Digital Currency Race
Celestial decided not to pull fate by the beard, andbegan preparations for the launch of a centralized cryptocurrency. It sounds contradictory - how can a centralized currency system be) generally called crypto. In fact, no matter what is called, the important thing is that the new system can easily capture the financial market of developing countries, now the WeChat and AliPay ecosystems are better developed than anyone else. In any case, in terms of the number of users, they are ahead of the rest. At the same time, American lawmakers, under pressure from bankers, on the contrary, are restricting similar initiatives of their companies, for example, Facebook. That is, it is not about development assistance, as China does, but strangulation. If the moment is missed, and the Celestial Empire launches its system, then de facto the yuan will become the number one among world currencies.
Many financial experts call Librathe only chance to get around China is to create a really working digital currency that will be able to cover the whole world, especially developing countries. Instead, US authorities consider Zuckerberg’s initiative a threat to global financial stability. At their core, both projects are similar, only cryptoyuan is more flexible and scales well. When it is said that there are two billion users on Facebook and Libra will be in demand among many, it is also necessary to remember that the ecosystem of digital currencies in China has almost formed - on top of Alipay, WeChat, and there are many more popular applications. When the new system works, the army of users will count two or three billion real ones, and not dubious calculations from the statistics of the number of users (it’s no secret that one third of accounts are fake, long forgotten, there are still a lot of simply inactive).
Chinese cryptocurrency will be tied to the courserenminbi, and he is very stable, unless the authorities from time to time adjust his rate against the dollar. After starting the system, the value of the Chinese currency will be several times higher, which will lead to an even greater influx of users into the system.
If now the Americans do not give the green light to launch anddevelopment of Libra, then the Chinese crypto-yuan will de facto become the most powerful global currency in all countries that are not yet in the Fed. The first in line is India with a population of more than a billion. Here, so many people do not have access to banking services, and the Chinese digital currency can provide them with one.
Libra still has a reserve for a successful start -Facebook, WhatsApp, as well as Instagram can easily deliver users, and even be the main platforms for the circulation of a new currency. In the meantime, partners are gradually leaving the project, Mastercard, Visa, as well as other companies have already announced that they will only observe from the outside and are not going to participate in the project now.