We have heard about how Facebook will be releasing its own cryptocurrency which is named as Libra. However, Facebook has just announced Libra right now as the cryptocurrency is set to be launched by next year. But we are now getting reports that other organizations are already planning to beat Facebook to launching their own cryptocurrency. Recently, there were reports that Telegram might soon launch a cryptocurrency named ‘Gram’. Now, we have news coming out of China that its central bank is also planning to launch its cryptocurrency.
According to a report by Forbes, this measure by China’s central bank is to cut the costs of circulating physical money. As we all know, there are a lot of costs including money printing, distribution, worker pay and security measures. Thus, China is looking to launch its cryptocurrency and the announcement might happen as soon as November 11. But it is also to be noted that this piece of news is not new or surprising for many in China. Because the Chinese central bank is apparently planning to launch its cryptocurrency since 2014.
People’s Bank of China already has plans to distribute its cryptocurrency from more than seven institutions at first. These institutions include the likes of Tencent as well as Chinese giant Alibaba. Along with that, China’s payment card issuer China UnionPay is also expected to be on board at first. Also, PBOC is hoping that the cryptocurrency will make its way to the West as well with the help of its correspondent banks.
Although it is too early to say how good or bad this idea from PBOC could be, we know that this was always in China’s plans. However, the process was sped up when Facebook announced Libra cryptocurrency which has already raised regulatory concerns. Earlier this month, PBOC’s deputy director said that China’s digital currency is “almost ready”