Beautiful Virgin Islands

Monday, Aug 04, 2025

China warned not to rush into creating digital currency to rival Facebook’s Libra, instead join global debate

China warned not to rush into creating digital currency to rival Facebook’s Libra, instead join global debate

China has fast tracked development of its sovereign digital currency, but a former central bank deputy governor has urged China to think about its response. Central banks from Canada, Britain, Japan, and Sweden, as well as the European Central Bank, this week joined forces to look at ‘cases for central bank digital currency’

A new theory appears to be emerging in China with regards how it should cope with the potential challenges from Facebook’s blockchain digital currency Libra, with suggestions it should shift towards working with other nations to regulate the sector rather than fast-track its own alternative medium of exchange.

Debate continues over whether and how China’s central banks should issue its own digital currency, with concerns mounting that popularity of Libra may further enhance the dominant role of US dollar in the digital era.

China’s yuan is not expected to be included in the underlying assets of Libra, while the People’s Bank of China has cracked down on cryptocurrencies such as bitcoin, and has also seemingly made progress in developing a sovereign digital currency.

But Zhu Min, a former deputy governor at the People’s Bank of China, has urged China to further consider its response to Libra, which is backed by a group of hard currency assets and is expected to be launched this summer.

“I think it’s critically important to join the discussions and take part in coordinated global regulation of Libra,” Zhu was quoted as saying by Sina.com.

Zhu added that the central bank’s digital currency research scheme, officially known as Digital Currency Electronic Payment, is a “natural process”, suggesting that there is no schedule for the launch of China’s sovereign digital currency.

And Zhu is not alone in calling for a global regulatory framework covering digital currency that could involve China.

Ba Shusong, a former researcher at China’s State Council Development Research Centre, who currently serves as chief China economist for the Hong Kong stock exchange, said that a framework overseen by a multilateral institution is needed to monitor digital currencies such as Libra as they have the potential to reshape the global financial system and challenge existing national monetary authorities.



Many issues surround digital currencies because their usage is not limited to any single country, Ba told a seminar at the Asian Financial Forum in Hong Kong in January.

Ba warned, that with different countries at various stages of their economic and policy cycles, the rise of digital currencies could create tensions among central banks and regulators as digital currencies can make it difficult for central banks to manage their foreign exchange controls.

“You would need to first improve the regulatory framework for [financial] technology,” Ba added. “There is a need for global cooperation for an alternative regulatory framework.”

Ba said that Facebook’s Libra raised questions about how a project of its size should be regulated to guard against its potential use for illicit means including money laundering.

This week, Vodafone became the latest company to leave Facebook's digital currency project after backers including PayPal and Mastercard also left The Libra Association amid regulatory scrutiny from around the world.

“We will continue to monitor the development of the Libra Association and do not rule out the possibility of future cooperation,” a Vodafone spokesman said in a statement.

Earlier this week, the Bank of International Settlements announced that that it had created a group involving the central banks of Canada, Britain, Japan, and Sweden as well as the European Central Bank to “share experiences as they assess the potential cases for central bank digital currency”.

Hiromi Yamaoka, former head of the Bank of Japan’s (BOJ) division overseeing payment and settlement systems, said the decision was a sign of how Libra has triggered global competition among central banks to make their currencies more appealing.

“The latest decision [by the six central banks] is not just about sharing information. It’s also an effort to keep something like Libra in check,” said Yamaoka who, during his time at the BOJ, was directly in charge of negotiations on new technology.

“Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology.”

Cheney Tsoi, president of the Asia Blockchain Society, argued that bitcoin, the most widely used cryptocurrency, is successful because of its “decentralised” nature.

The blockchain technology that underlies all cryptocurrencies allows individual holders of the currency to control its increase and distribution, with no central authority overseeing the process.



But for other less successful digital currencies, their recognition could be greatly enhanced if central banks were to introduce their own government backed and controlled digital currencies.

“Innovation starts with the private sector, but for big scale use, it will need government support. The introduction of digital currencies by central banks may bring about new usage. We see a good trend,” Tsoi said.

Zhu Jiang, general manager at Kingsoft Cloud, said that at the moment, the physical world and virtual world were in the process of converging.

Zhu added that digital assets could be instrumental tools in the future, but said they still need the backing of government policies.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
×