Huawei’s CEO has announced that he believes China can compete with Facebook by issuing its own digital currency and thus take a share of Libra’s potential market, Cointelegraph reports.
China’s national news outlet made the announcement public following a press conference on 18th July when Ren Zhengfei said he believed China could easily create a digital currency with the same value proposition as Facebook’s Libra.
Responding a question from an Italian journalist, he said, “China can also issue such a currency by itself. Why wait for others to issue it? The power of a country is always stronger than an Internet company.”
It is known that the Chinese central bank (PBoC) has a number of concerns about the impact of Libra on the country’s economy. And as Cointelegraph had commented in previous articles, PBoC’s director, Wang Xin, said that if Libra is mostly pegged to the U.S. dollar, China would be at a disadvantage. “If so, it would bring a series of economic, financial and even international political consequences,” he claimed.
It has also been reported that China is considering issuing its own digital currency, although its use cases have not yet been clarified by Beijing.
Tim Draper, a well known investor, has also commented about the Congressional hearings about Libra last week, saying, “We’re putting regulation before the innovation — Facebook’s just announced Libra; they haven’t even been able to ship it yet, and the regulators are all over them.”