According to representatives of the People’s Bank of China, the country will get ahead of Facebook and will soon launch its cryptocurrency, supported by the government.
According to rumors, a Chinese cryptocurrency calledDC / EP (Digital Currency / Electronic Payments) is issued for seven institutions, including the Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, Tencent, Union Pay and Alibaba.
Mu Changchun, deputy director of the departmentpayments of the People’s Bank of China, said in September that "Chinese cryptocurrency is designed to protect monetary sovereignty and legal currency status."
DC / EP will be used in 'two-tiersystem. " First, the central bank will create cryptocurrency and sell it to trusted institutions, and then the institutions will be responsible for distributing DC / EP to individuals, retailers and other enterprises. Cryptocurrency will also be available through the WeChat messaging app, and will work with the Alipay app.
The two-tier DC / EP system aims to reduce the demand for other crypto assets, as the Chinese government is skeptical of speculative tools like bitcoin.
Mu also added that from a technical point of viewChina's digital currency will resemble Facebook's cryptocurrency. However, DC / EP will be able to process 30,000 transactions per second, rather than 10,000 like Libra.
Now China and Facebook are competing in whothe first will release cryptocurrencies of this magnitude, but after the departure of Stripe, Visa, Mastercard, eBay and Mercado Pago, Libra's prospects do not look very encouraging.
According to the materials www.ibtimes.com