With Bitcoin getting mainstream recognition, there has been a lot of institutional onboarding into digital assets. Giants like Facebook, J.P. Morgan, Amazon, Alibaba, Microsoft, and others from all industrial sectors have started to look towards these assets as something that could potentially help solve problems in existing systems, ranging from payments, transfer of value etc.
Different countries and governments have now started developing government-backed cryptocurrencies for these reasons. Facebook’s Libra has possibly created a hype as big as Bitcoin did, which is why regulators from various countries are rethinking the impact of digital assets on fiat currencies. Xiaochuan Zhou, former Governor of the People’s Bank of China [PBoC], gave his views on how Libra and trends in similar cryptocurrencies might affect major traditional currencies of the world.
According to cnLedger, Zhou opined that “Libra represents the trend of digital currencies” and that there “might emerge a more internationalized, globalized currency, a currency so strong that will cause major currencies to establish exchange relations with it.” He also made it clear that “it may not necessarily be Libra,” but currencies from other countries are already building similar currencies.
Although Libra generated a lot of mixed reactions, it is facing a massive blockade from the U.S. regulators who have asked Facebook to halt their development on Libra and Calibra.
cnLedger further added,
“Zhou believes that people valuing Libra is inseparable from the global dollarization trend, and maintaining a strong monetary status may put China in a favorable position. China should take precautions and undertake policy research.”
The CEO and Co-founder of Binance, CZ, also opined on something similar a few days ago when he said that Libra, Tencent, or whoever gets to launch a stablecoin, will cause their respective currency to achieve “world domination.”
Tencent or Facebook? = RMB or USD stable coin world domination for the first mover. Still fiat, but world domination.
Regulators in one country can’t touch the other. The can only help grow their own “child”, even if just a bastard one. Race is on.https://t.co/lTO2qARMAJ https://t.co/YlLljtDHJC
— CZ Binance (@cz_binance) July 9, 2019