No US support for Libra leaves Market Wide Open for China’s Digital Renminbi, says Marcus.
Facebook’s cryptocurrency initiative, headed by David Marcus, has hit a bump in the road as the US Senate and Federal Reserve are failing to support the project. At the same time PayPal, MasterCard and Visa all withdrew from the project this month after becoming frustrated with the regulatory system surrounding the currency.
China, on the other hand, has increased its efforts since Facebook announced the Libra project back in June.
China's Digital Currency Electronic Payment (DCEP) seeks to prevent Libra from reinforcing the dollar within the financial system and this week Marcus warned that this could would mean a whole new digital reserve currency that could be used to bypass US sanctions.
Unlike China’s digital renminbi project Libra would be linked to the five reserved fiat currencies approved by the IMF (International Monetary Fund).
Mu Changchun who heads the Research Institute on Digital Currency for the People's Bank in China has set out a detailed proposal which aims to launch the new coin and distribute it in the major Chinese banks.