China rushes to embrace blockchain with Facebook’s Libra just around the corner

  • People’s Bank of China is preparing to launch its own digital currency, with President Xi Jinping urging an aggressive approach
  • Last week, Facebook founder Mark Zuckerberg told US lawmakers that Libra was essential to projecting American financial leadership around the world

China is looking to apply blockchain and artificial intelligence technologies in cross-border financing and settlement as part of a broad strategy to remain competitive in the era of digital finance, a senior Chinese foreign exchange regulator said on Sunday.

Lu Lei, a deputy head of the State Administration of Foreign Exchange (Safe), the capital flows watchdog, told a forum in Shanghai that Facebook’s plan to launch Libra, a potential “global currency”, had stirred huge interest in future monetary policy, financial stability and the international monetary system, and his agency was trying to keep up.

“We are not quite sure how a new technology might evolve, but we must pay attention to control risk,” Lu said.

Facebook announced in June that it would launch its digital currency backed by a basket of freely convertible currencies. The People’s Bank of China, the central bank, is working on its own digital currency, although it is an open question whether a digitalised yuan would be popular among companies and individuals.

scmp.com

China rushes to embrace blockchain with Facebook’s Libra just around the corner
Loading spinner

Leave a Reply

Scroll to top