Huawei, Why Wait for the Virtual Currency Libra? China Can Make It Simple

Lim Jung Bi, the head of Huawei (the largest Chinese telecommunications device company) said in an interview with Sina News, "China can easily issue digital currency with a value equivalent to Facebook's virtual currency Libra. Why wait for others to issue? The power of a country far exceeds that of one Internet company."

It was reported on the 8th that China's central bank is developing its own digital currency against Facebook's virtual currency Libra.

Experts, however, agree that "the power of a country far exceeds that of one Internet company," as Huawei CEO Lim Jung-bi claimed, but the origin of the virtual currency itself is in the midst of decentralization. It is totally different from the characteristics of a country where political power is concentrated.

If virtual currency is created and controlled by the State Council, it is nothing more than the current paper currency being converted into digital currency. However, he argued that the virtual currency has no advantage other than its functions such as lowering the commission rate among international banks and prompt remittance.

In other words, digital currency issued in each country is a closed currency limited to a certain region, and its scope of use is limited. However, the virtual currency of IT giants, such as Facebook, that can secure a global financial infrastructure that has already crossed borders, is boundless in scope for future economies.It can have a lot of influence on politics," he said.

In other words, the reason why many countries, including China, develop digital currency with the issue in mind is not decentralized, but seems to be to use it as a means to prevent inflation in their currencies in international financial markets and to circumvent economic sanctions by the other countries.

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