China's Central Bank Issues Digital Currency as a Way to Reduce Dollar Dependence.

According to the South China Morning Post on Tuesday, China's central bank, the People's Bank of China, has begun developing its own digital currency against Facebook's virtual currency Libra.

The People's Bank of China is known to have received permission from the Chinese government authorities to begin cooperation with related agencies by issuing the central bank's digital currency (CBDC).

The reason for the development is that Libra has decided to issue its own currency as a threat to China's dominance in digital finance, potentially posing a risk to China's financial system in the future, and particularly to the ambiguous role of the U.S. dollar by Libra, according to an official at the People's Bank of China. This move is seen as an attempt to preemptively expand its digital currency around the world while reducing its dependence on the U.S. dollar.

Meanwhile, more and more countries are expressing disapproval of Facebook's virtual currency, Libra. As such, governments are nervous about the potential to pose a threat to their existing global base currency systems and dominate as a borderless digital finance.

Reporter James Lee (news@dailycoinews.com)의 기사 더 보기

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