The new project head, Changchun Mu claimed that China’s national cryptocurrency will be technically better than Facebook’s Libra. Mu is the new lead to the digital currency project, taking it from Yao Qian. Mu also has huge plans and aspirations for the project.
A local Chinese news outlet, Shanghai Securities News mentioned Mu’s comments about the incoming token. He also mentioned few detailed insights of the project and was also pitting it against Libra. He claimed,
“Its functional attributes are exactly the same as paper money, but it is just a digital form.”
The reports also mentioned that the currency will not have general characteristics of a typical cryptocurrency. There is no Blockchain Technology, but has a centralized two-tier system.
A two-tier system means that local banks that are outside PBoC need to buy the token from them. Also Mu mentioned that it will cost 100% rate. But, the users can use the cryptocurrency without a bank account.
Threat to Libra?
PBoC’s move is about the retaliation to the arrival of Libra. The former PBoC governor, Zhou Xiaochuan claimed,
“Libra has introduced a concept that will impact the traditional cross-border business and payment system.”
Adding weight to this mention Mu claimed that basically, the project’s aim was to plan ahead to forbid the potential of Libra muscling in on China’s monetary fields. Mu went on explaining that China’s cryptocurrency will not only protect against Libra, but also will outdo the currency in many ways.
The ease of transferring funds is a stand out feature as per Changchun Mu. Basically, this is because the digital currency, yuan is movable without internet or mobile connection due to near-field communication(NFC) technology.
As per the announcement, the phones require to make physical contact and funds are transferred. Mu said also said, “Even Libra can’t do.” Mu and PBoC are fearful about the invention of Libra.