Bitcoin and crypto are increasingly becoming a matter of government concern. US regulators are dipping their toes in the field, while China is afraid of losing its lead.
The possible launch of Libra is scaring for the Chinese government, which is now seriously considering the launch of its state crypto.
It would be everything Libra wishes to become, but it would be centrally controlled and closely monitored.
It is a trend which is opposite to the original purpose of Bitcoin and other cryptocurrencies. It will probably create an exciting new dynamic in the crypto field as well as sound as a wake up call for some slumbering governments.
Blockchain in Government
Wang Xin, research director of China’s central bank, mentioned that Libra is making regulators nervous. As a consequence, China may rush the production of a national cryptocurrency in the next months. So far, the country has had a mixed relationship with cryptocurrencies. It has banned crypto use through exchanges and initial coin offerings (ICOs). Since 2014, it’s been discussing the qualities of a national cryptocurrency. The idea goes against the very notions and goals of most independent forms of crypto. It would allow the nation to record every transaction that occurs. Chuanwei Zou, the chief economist at Bitmain, explains that China relies heavily on the mobile payments sector. The success of WeChat and Alipay has kept it safe from the influence of Facebook. But Libra represents a considerable threat to mobile payments.