The People’s Bank of China (PBoC), recently published a statement on the 2nd of August, announcing that the development of its own official virtual currency, would now be fast-tracked. In the statement, the People’s Bank also mentioned specific plans regarding financial growth and economic development as put forward by the Party Central Committee as well as the State Council. These plans generally include support for small enterprises with both monetary aid and favourable policies as well.
The Chinese apex bank has said that it will speed up the development of its own cryptocurrency, as well as pay more attention to other virtual currencies both within the country and outside of it. As part of its financial plans, it will also actively develop a less risk-prone outlook, as well as proper policy and publicity moves, so as to speedily solve financial issues as they may relate to the Chinese people.
When Facebook first announced the Libra, there was substantial dissent – especially from the U.S. government – for various reasons. However, there were a number of people who praised the decision, with some predicting that the entrance of a huge firm like Facebook is great for the crypto industry because it will not only create more publicity that will drive adoption but also influence more institutions to follow suit. Now, it would seem that the PBoC has proven these supporters right by deciding to accelerate its plans for the “Digital Renminbi”.
Last month, Wang Xin – the director of the PBoC – highlighted advantages that could from the use of Libra. According to Xin:
“[Libra] could create a scenario under which sovereign currencies would coexist with U.S. dollar-centric digital currencies. But there would be in essence one boss, that is the U.S. dollar and the United States. If so, it would bring a series of economic, financial and even international political consequences.”
The PBoC is said to have already received approval for the currency.
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