Chinese Central Bank: New cryptocurrency will be somewhat similar to the Facebook pound

The digital currency that China is about to launch will have some similarities with the pound cryptocurrency, from Facebook, and can be used on payment platforms such as WeChat and Alipay, according to a senior official from the central bank of that country, Reuters reports.

Mu Changchun, deputy director of the payment department of the People's Bank of China, said at a conference that the development of that new currency will help protect the monetary sovereignty of the country as commercial applications of such currencies expand.

The official said that it will be as safe as the tickets issued by the central bank and that it can be use even without internet connection.

In addition, Mu said, it will keep two simultaneous goals in balance: allow anonymous payments and prevent money laundering. He explained that his advantage over WeChat and Alipay currencies is that these platforms could theoretically bankrupt, with the consequent losses for its users.

Last month Mu said that the cryptocurrency, which he said was close to being issued, will replace the money in circulation and sustain the yuan internationalization.

According to Forbes magazine sources, the Chinese digital currency will be ready by November 11.

Wang Xin, director of the Research Office of the People's Bank of China, said last month that Beijing is stepping up efforts to introduce its own digital currency following the presentation of the pound, the future cryptocurrency of Facebook, which could pose a challenge for cross-border payments, monetary policy and even the financial stability of the Asian giant.

• Facebook expects its new digital currency to be operational in the first half of next year.

• Unlike current cryptocurrencies, such as bitcoin, pound It will be based on financial reserves, which means it won't be as volatile and unstable.

• The cryptocurrency would be managed by a nonprofit association, backed by several companies and organizations. For now, Libra Asociation has 27 founding members. It is planned to raise this number to 100 and that each of them operates its own 'knot' where transactions are validated.

If you liked it, share it with your friends!