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    China is ready to strike the markets

Bitcoin Beware!
China is ready to strike the markets

China has established a framework that would allow its central bank to issue a digital currency to commercial banks and third-party payment networks by Alipay and WeChat Pay.

According to experts, the new digital currency would be similar to Facebook’s Libra coin. As Mu Changchun, deputy director of the People’s Bank of China’s payments department, explained the development of the coin would help protect the country’s foreign exchange sovereignty as commercial applications of such currencies expanded.

“They already have all the system and the network ready. I think you will see it very soon, in the next maybe two to three months,” Lee told CNBC’s Tanvir Gill at the Singapore FinTech Festival on Monday.

The launch is planned to start as a trial – not to replace physical money completely.

Several experts have repeatedly warned that digital currencies could increase the risks of fraud, particularly money laundering and terrorism financing. However, many governments have not found a way to regulate the space.

According to Daniela Stoffel, Switzerland’s state secretary for international finance, the expected launch of China’s digital currency could push authorities around the world to decide on how they want to use and regulate such technology.

“If the governments now realize that this is now really actually happening, and the question and challenges that are implied in an e-currency are now real, I hope this will lend further momentum to decisions on a global basis,” Stoffel told CNBC’s Tanvir Gill on Monday.

China is not the only country that is working towards issuing digital currencies. In Switzerland, the Swiss National Bank said last month it’s working with the country’s stock exchange to examine the possible use of such currencies in trading.

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