Major Buzz for Major Cryptocurrencies like Bitcoin, ETH, And XRPJune 27, 2019
More numbers of Libra-styled cryptocurrencies might come from China. This is likely to be a significant bullish trend for major digital currencies.
The Global times Editorial recently stated that China could not afford to be out of competition from the digital currency world.
The editorial further published, that unlike Bitcoin or others, the value of Libra will be backed by currencies and securities to make it reliable and stable. This due to its hard asset reserves, and it would impact the digital economy and the international financial systems.
The editorial further states that the sooner the alliance is formed, Libra might become the de facto representative of the United States Dollar. Thus the US will get a significant advantage in terms of first-move in the global economy, and governments will find it challenging to block the penetration of Libra into their digital economies. This can particularly worrisome to China.
What is happening now is a digital economic revolution, and China will be finding itself in a passive competition. If China opts out of digital currency, it will be out of the advantages that it might otherwise have with the internet and the financial technology centers.
China will be able to participate in this economic revolution by letting several Libra rise and permit the Chinese Internet Giant to develop their versions of Facebook’s Libra.
This will bring in significant buzz for major cryptocurrencies like Bitcoin, ETH, and XRP. This will only further fuel the ongoing rally.
Investor enthusiasm was handled in a heavy-handed manner by the Chinese government in the year 2017. Therefore, Clement Thibault, Senior Analyst at the global financial markets were skeptical of the prospects of China warming up to its dealing with major cryptocurrencies.
The government of Beijing wanted to have firm control of its financial system. Eventually, to allocate credit according to its political agenda. This is one reason why Beijing would not permit Bitcoin to compete with the national currency of the country.
China, at a point in time, will create its cryptocurrency backed by its own rules, but that might not impact Bitcoin in any way since the two would exist separately and wouldn’t be in competition whatsoever.
China would like to sustain its monopoly.Alex Karasulu stated, “Short term, China could be hedging against trade wars using Bitcoin,” further added, “long term, China realizes it needs its own Libra perhaps associated with its own Petro Yuan. The Libra is essentially a blockchain wrapper around a pool of many sovereign currencies without acting as a safe haven like Bitcoin in case of a global economic catastrophe.”