The Beef Between China And Libra Is Not Good News For Cryptocurrencies

News, Opinion, Regulation | September 27, 2019 By:

The struggle between the Central Bank of China and Facebook’s Libra seems to be nowhere near the conclusion as both companies have decided to not specify the release date of their digital currencies.

Note that I’m not referring to these currencies as crypto, but rather digital ones as it’s been confirmed that they will most likely have nothing to do with the altcoins and tokens we know and love.

Despite this though, the crypto community is still paying a lot of attention to the developments of this terrible situation. Although there’s very little in common with cryptocurrencies, both parties tend to hint at it at an increased level. Libra for the attention, and PBoC for the disruption of that attention.

The two seem to mirror each other

No matter how hard Libra takes a hit on the global financial scene, the PBoC seems to give it even larger trouble, despite the fact that Facebook is already well outside of the Chinese firewall, besides several foreigners that may have it on their phones when they get to China.

But the biggest “mirroring” of actions that we’ve seen from the two parties was today actually. Zuckerberg, the CEO, and founder of Facebook, and therefore an influential figure in Libra mentioned that there is no defined time for launch, right after the PBoC made the same announcement this week.

It seems that the two parties are pressuring each other to launch first so that they can then work around the systems developed by the other.

How can this impact the crypto community?

Despite Libra not having the exact features of a cryptocurrency, people will still be able to exchange it for various other altcoins as well as Bitcoin. Because of this, it receives some kind of liquidity in the crypto scene.

According to Youthfulinvestor, This was predicted to have a major impact on the Chinese crypto market, which is slowly going dark after the heaps of regulation that the government introduced on both trading and mining operations.

The introduction of the local digital currency is the PBoC’s attempt to prevent any kind of crypto “revival” in the country because of Libra.

The impact that the Chinese market could have had on the crypto market, by simply accessing it through Libra purchases will be gone, thus denying well over millions of potential investors the opportunity to grow the market.

China was the only place it could work

Don’t get me wrong, the Libra team is also quite frustrated with this new project that the People’s Bank of China is developing. China was arguably the only place that Libra could somehow succeed due to it being almost the only legal option. It didn’t necessarily classify as a cryptocurrency, but allowed access to the crypto market, thus successfully circumventing Chinese regulations. That’s one of the reasons why the whole world is up in arms against it.

But elsewhere in the world, Libra doesn’t really provide a solution. It’s more like an unnecessary inconvenience for an already devoted crypto fan. They’d have to restructure their whole setup to just use the currency rather than having it integrated into their already existing wallets.

And it’s not like Libra provides and serious benefit or anything. It’s a simple stablecoin that can very easily be replaced by TUSD which is adaptable to any crypto wallet.

Overall, Libra will have to fight neck and tooth to somehow dominate the Chinese market simply because they’d be the only legal option to access the crypto market. But as of the rest of the world, they’re no something that will be a gamechanger.