The former head of the Chinese central bank called Libra a threat and urged to accelerate the development of the digital yuan

Former chairman of the People’s Bank of China (PBoC), Zhou Xiaochuan, believes that the concept of a global digital currency that can be exchanged for Fiat, which was introduced by Facebook, threatens existing cross-border payment systems and may weaken the position of national currencies. He stated this at an event in Beijing, reports the South China Morning Post .

Zhou Xiaochuan

According to him, the Chinese authorities need to strengthen the national currency and consider the Hong Kong model to create a digital yuan, which involves the issuance of money by commercial enterprises under the supervision of the central bank. Some analysts have already expressed the view that the task can be placed on the technology giants Alibaba and Tencent.

Earlier, PBoC researcher Wang Xin expressed concern about the perceived dominant role of the US dollar in the basket of currencies with which Libra should be supported. He also said that the central bank has already received permission from the authorities to develop its own digital currency, but did not specify at what stage this process is.

It is worth noting the progress of PBoC in working with blockchain. The central bank platform, based on distributed registry technology, has already processed foreign exchange transactions worth more than 30 billion yuan ($ 4.36 billion).

Meanwhile, Bank of England chairman Mark Carney said that Libra must be bulletproof from the first day of its existence in order to protect users from losing money and other risks. He confirmed that the G7 central banks are carefully studying the initiative and approach it with great care, but at the same time and rigor, reports Bloomberg .

Recall their concerns regarding Libra expressed and Fed Chairman Jerome Powell. He stressed that the project could not be launched until its creators gave answers to all the troubling questions.

Fed: Facebook's Libra Project Can't Be Launched Without Responding to Hazardous Questions

Regulators in many countries, including Russia , India and the United States , continue to criticize Libra and a non-profit organization that will take over its management.

It is expected that next week in the US Congress will make CEO Calibra David Marcus, where he will explain all the contradictory aspects regarding Libra.

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