April 23, 2024

Ex-head of the Chinese central bank: Libra should be controlled by the IMF

Former Chairman of the People's Bank of China Zhou Xiaochuan is confident that Facebook's Libra digital currency project is unlikelywhether it will go far without control by international financial institutions.


“People will doubt the motives of Libra, initiated by a private company. She will work better under the supervision of the International Monetary Fund. ”, - quotes the banker managing partner of Primitive Ventures Dovi Wang.

According to her, Xiaochuan’s thoughts deserve attention:

“I watched the video in its entirety. His comments are very relevant and super wise, to be honest. Representatives of central banks are not fools when it comes to the monetary sphere. ”

Zhou Xiaochuan, considered one of the mostinfluential economists of the world, previously criticized the initiative from the largest social network. So, in July, he said that Libra threatens existing cross-border payment systems and could weaken the position of national currencies.

Therefore, Xiaochuan believes, the Chinese authoritiesit is necessary to strengthen the national currency and consider the Hong Kong model to create a digital renminbi, which involves the issue of money by commercial enterprises under the supervision of the central bank.

Earlier, FATF President Xiangming Liu expressed the view that Libra and other “stable” coins, if mass accepted, would interfere with efforts to stop money laundering and terrorist financing.