How China’s New Cryptocurrency Could Challenge Facebook’s Libra | WSJ
The digital yuan can be transferred without the Internet, an account and even without the knowledge of the bank, almost like cash.
Changchun Mu, the new head of the People’s Bank of China’s digital currency division, spoke about some of the technical features of the future currency and said that in this regard, it will surpass Facebook’s cryptocurrency. Libra.
According to him, the Internet, a mobile network or a special account will not be needed to transfer the digital yuan. Operations can be performed by physical contact of two phones on which a suitable wallet is installed. Presumably we are talking about near-field communication technology (NFC).
In addition, you will not need a bank account to work with digital currency, so the traditional financial system will not be able to control transactions, which will allow users to maintain confidentiality..
However, high-tech yuan will only be distributed through commercial banks, which will have to buy them. at Central Bank of China at the rate of 1: 1 to fiat. To open a wallet, you will also need to contact a financial institution or commercial organization..
An incentive to accelerate development digital yuan has become the official Facebook announcement of work on Libra, but the CEO of Huawei believes that the Celestial Empire will launch its project before the social network.
text: Ivan Malichenko, photo: steemiti