More numbers of Libra-styledcryptocurrencies might come from China. This is likely to be a significant bullish trend for major digitalcurrencies.

The Global times Editorial recently statedthat China could not afford to be out of competition from the digital currencyworld.

The editorial further published, that unlike Bitcoin or others,the value of Libra will be backed by currencies and securities to make itreliable and stable. This due to itshard asset reserves, and it would impact the digital economy and theinternational financial systems.

The editorial further states that the sooner the alliance isformed, Libra might become the de facto representative of the United States Dollar. Thus the US will get a significant advantagein terms of first-move in the global economy, and governments will find itchallenging 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 Chinawill be finding itself in a passive competition. If China opts out of digitalcurrency, it will be out of the advantages that it might otherwise have withthe internet and the financial technology centers.

China will be able to participate in this economic revolution byletting several Libra rise and permit the Chinese Internet Giant to developtheir versions of Facebook's Libra.

This will bring in significant buzz for major cryptocurrencieslike Bitcoin, ETH, and XRP. This willonly further fuel the ongoing rally.

Investor enthusiasm was handled in a heavy-handed manner by theChinese government in the year 2017. Therefore, Clement Thibault, Senior Analyst at the global financialmarkets were skeptical of the prospects of China warming up to its dealing withmajor cryptocurrencies.

The government of Beijing wanted to have firm control of itsfinancial system. Eventually, toallocate credit according to its political agenda. This is one reason why Beijing would notpermit Bitcoin to compete with the national currency of the country.

China, at a point in time, will create its cryptocurrency backedby its own rules, but that might not impact Bitcoin in any way since the twowould exist separately and wouldn't be in competition whatsoever.

China would like to sustain its monopoly.

AlexKarasulu stated, “Short term, China could be hedging against trade wars usingBitcoin,” further added, “long term, China realizes it needs its own Libraperhaps associated with its own Petro Yuan. The Libra is essentially ablockchain wrapper around a pool of many sovereign currencies without acting asa safe haven like Bitcoin in case of a global economic catastrophe."