New Head of China’s Digital Currency Says It Beats Facebook Libra on Tech Features

CoinDesk(Source: Daniel Palmer)    2019-09-06 17:30:39

The Chinese central bank has a new digital currency chief who says its upcoming digital yuan has features not offered by Facebook Libra.

Changchun Mu – previously deputy director of the payments and settlement division at the People’s Bank of China (PBoC) – recently stepped into the lead role at the Digital Currency Research Institute, reports Shanghai Securities News.

According to the state-run news source, Mu recently published details on PBoC’s digital currency – apparently being carried out in a secret office away from the bank’s Beijing headquarters – describing it as a digital currency and electronic payment tool with “value characteristics.”

“Its functional attributes are exactly the same as paper money, but it is just a digital form,” Mu said.

Perhaps most notably, he set out some of the digital currency’s technical aspects, and compared it with Facebook’s Libra.

PBoC’s digital yuan will be able to be transferred between users without an account and without a mobile or internet network, the report cites Mu as saying. Providing a user’s mobile phone has a wallet, the digital currency can be transferred to another person by placing the two phones in physical contact. Presumably, this feature is enabled by near-field communication (NFC).

“Even Libra can’t do this,” Mu said.

PBoC’s digital currency also doesn’t need a bank account to be used, and is “free from the control of the traditional bank account system,” Shanghai Securities News cites Mu as saying. He further suggested it allows users to preserve their privacy when using the system.

However, the digital currency will be delivered via commercial banks like fiat currency. The banks must open accounts with the PBoC and buy the token at 100 percent value. After that, users may open digital wallets for the digital currency through the banks or commercial organizations.

According to the report, Mu added that the main reason for developing the digital currency is “planning ahead” to protect monetary sovereignty and China’s legal currency. That may be a hint that the advent of Facebook’s Libra is behind the sudden rush of development at the central bank.

Former People’s Bank of China (PBoC) governor Zhou Xiaochuan said in July that “Libra has introduced a concept that will impact the traditional cross-border business and payment system.”

As such, China should “make good preparations and make the Chinese yuan a stronger currency,” Zhou said.

Yuan image via Shutterstock

Expected to rise:0
Expected to fall:0
Live More
Published 15:06
Fact: Since the beginning of May, [Expand]
Published 14:30
China’s Internet giant @TencentGlobal announces 500 billi... [Expand]
Published 14:30
#TronLink Android app update: 📲Released v3.6.0 📲Testi... [Expand]
Published 14:12
#CT_index Provided by Cointelegraph BTC - [Expand]
Published 13:49
"Why do you critique Ethereum so much" Because ETH bag h... [Expand]
Published 13:48
50/50. 8 hours to go. [Expand]
Published 13:12
Keep building everyone! [Expand]
Published 13:06
We are super excited to announce a #VritualReality Treasu... [Expand]
Published 13:00
Instead of talking about the best way to make money in BS... [Expand]
Published 12:36
Did you miss out on the first ever $JST Airdrop?👀 No n... [Expand]
Published 11:30
Happy Memorial Day😽💕 🇺🇸
Published 11:18
According to @TRONSCAN_ORG, the block height of #TRON net... [Expand]
Published 11:12
A number of users had asked when #Binance will distribute... [Expand]
Published 10:37
Goldman Sachs Hosting Bitcoin Call as Institutional Inter... [Expand]
Published 10:18
Messari is a popular data and research source in China. E... [Expand]
Published 10:06
CoinCDX stated its goal with this recent investment would... [Expand]
Published 10:00
According to the latest report from local news outlet Bei... [Expand]
Published 09:12
Published 09:00
It’s funny, unlearning McKinsey is the first thing I had ... [Expand]
Published 08:54
Doja Cat apologizes for alleged past racist remarks. [Expand]