China is launching its own Digital Currency

It is hinted by the officials from the People’s Bank of China that China is ready to launch its own digital currency. In order to replace physical cash for consumers, a digital version of the renminbi will be launched.

As of yet, it is not known how the digital currency will operate. The things we do know about China’s digital currency is that its launch is quite close. It will is also anticipated that as Facebook is planning to launch its cryptocurrency Libra by next year, this has accelerated China’s plan to launch its own digital currency.

Deputy Director of the central bank’s payments department Mu Changchun said that the cryptocurrency is “close to being out”.

One of the motivations behind launching China’s cryptocurrency is to “protect (China’s) monetary sovereignty.”

Must read: US lawmakers ask Facebook to halt the launch of Libra cryptocurrency

Mu said, “Why is the central bank still doing such a digital currency today when electronic payment methods are so developed? It is to protect our monetary sovereignty and legal currency status.”

The digital currency of China will “bear some similarities” to Facebook’s cryptocurrency Libra, as per PBOC’s Mu. Furthermore, Mu said that the cryptocurrency will  “strike a balance between anonymous payments and preventing money laundering.”