The impending issues that are arising with facebook’s Libra have been emitting shockwaves in the Blockchain community. The Blockchain venture from the tech-giant is currently through a bumpy road with a lot of inflicted damages on its name and credibility.
Why is China on the Fastrack
As a result of that, China is planning to increase its speed in developing and implementing the e-yuan as soon as possible into the market. The Experts in the field believe that such a move from China is with regard that if Libra was to get through all the hassles and emerge successfully, they could serve a very huge competition for them in the blockchain space.
Therefore to avoid any clashes and possible regulatory issues, China is putting its plans on developing its e-yuan on the fast track. There are major issues with regard to putting the e-yuan as the digital currency of the nation as there are a lot of regulatory protocols that need to be revamped to make sure that there are no hassles.
China’s plan on developing its Central Bank Digital Currency (CBDC) scheme on the fast pace is to make sure that they have a winning edge over Libra if it were to recover from its losses.
Experts have other plans
Most of the Experts feel that it is a Hasty move from the country in the proposed scenario. There are also a lot of factors that might probably go wrong if there were any recession in the economic scenario of the country. Many of them are advising the country to regulate the digital currency in order to understand the behavior of the currency once implemented.
With re-affirming talks from the Chinese fin-tech experts like Ba-Shoushong, it is sure that they see some potential in the financial structure of Libra that could possibly restructure the existential financial system on a global scale.
They also feel that increased concentration towards the country towards innovation in the financial space will drastically put pressure on the stock exchanges between the nations and also will influence the crypto-presence on a global scale.
However, Hiromi Yamaoka, the former head of china’s banking division, however, feels that Facebook is a huge threat to the existential digital currency platform and with more and more interest over the same can cause union countries to compete with each other in establishing their digital currencies for themselves. This will cause mass level confusion in the existing financial condition around the world.