Analysts at RBC Capital Markets believe that regulatory barriers to launching the Libra project give China the national currency a chance to take a dominant position in emerging markets.
According to analysts, the announcement of the stablecoin Libra forced the People’s Bank of China (NBK) to accelerate the development of its own cryptocurrency, secured by the renminbi. At the same time, the delay in launching Libra makes the development of Chinese cryptocurrency even more justified.
“If US regulators are trying to refuse to launch Libra and are not developing regulations governing cryptocurrencies, then the state coin of China can become the main global digital currency in countries with developing economies,” analysts said.
Recently, US Treasury Secretary Steven Mnuchin said companies are reviewing their participation in the Libra project because of potential regulatory issues. However, many world-famous companies still want to join the project, and companies that left the association may still return.
“If a clear policy of regulators appears and the project is successfully launched, we will not be surprised if these companies re-apply for participation in the association,” analysts said.
Earlier, the Central Bank of China published a list of vacancies for working on state cryptocurrency. The Bank is looking for candidates with experience in computer systems, cryptocurrencies, microelectronics and econometrics for research and development of digital currency.