Chinese official, Huang Qifan, believes that Facebook’s Libra is bound to fail saying that China’s central bank will be the first to issue a digital currency.
Huang Qifan, who serves as vice chairman of the China International Economic Exchange Center, said this on October 28th at the first Bund Financial Summit. A Chinese media report has it that Qifan predicts China’s central bank to be the first to issue a national digital currrency. The Chinese official said:
I think the technology is getting more mature, and it is highly likely that China’s central bank will be the first to issue a national digital currency.
Qifan also slammed Facebook’s digital currency Libra, which has being criticized by U.S. lawmakers. Huang believes that the crypto will fail, as it lacks the support of real sovereign wealth. He said:
I personally don’t believe Libra will succeed. Some companies attempt to challenge sovereign currency by issuing bitcoin or Libra. The decentralized blockchain-based currencies are not supported by sovereign credit and hard to become real wealth.
U.S. Senator Mike Rounds had issued an open letter warning of the dangers in falling behind China in financial innovation.