Libra forces Central Bank of China to accelerate the development of its own digital currency

The risks that the Libra cryptocurrency project creates for the traditional financial system force the People’s Bank of China (PBoC) to devote more resources to developing its own digital currency.

This was announced on Monday by the head of PBoC research bureau Wang Xin, speaking at the Institute of Digital Finance at Peking University.

“Suppose that Facebook managed to achieve its goals and Libra began to be used to make international payments as money. What impact will it have on monetary policy, financial stability and the international monetary system? ”He asked.

Wang also added that, due to the occurrence of such risks, PBoC should be extremely careful to follow developments, as well as speed up the development of its own digital currency. “The development of this direction has been going on for several years. We started quite early, but nevertheless a lot more needs to be done to consolidate our dominant position, ”he noted.

Wang also said that the Central Bank of China should receive information about which countries’ currencies will be used to secure Libra, and what place the US dollar will occupy in the basket.

“We cannot allow a situation in which the US dollar will be the only major currency, and America will become the boss in the financial world. Such a development could lead to a series of economic, financial and, in a sense, international consequences, ”said Van.

In addition, the representative of PBoC confirmed the information according to which the department is developing its own digital currency, but did not name any deadlines.