Ren Zhengfei, CEO of Huawei Technologies, has recently remarked that China has the ability and it could launch its own digital currency to rival Facebook's Libra, which is set for an official launch in 2020. Zhengfei said this during an interview with Italy's L'economica.
Since Facebook and its partners in the Libra Association officially made public their plans to launch the digital currency, there has been a lot of hype and also criticism around Libra. This has also led to Facebook's David Marcus appearing before America's lawmakers to answer questions about the risks surrounding the proposed currency.
"Even China is able to issue such currencies, why wait for Libra? The strength of a state is greater than that of an Internet company," said (translated from Italian) Zhengfei when answering Italy's L'Economica on whether Libra being linked to the US Dollar maintains the USA's hegemony and whether Chinese banks amd companies will have access to the "Libra club."
Zhengfei's comment comes after a protracted trade war between the USA and China was slightly relaxed recently after America's President Donald Trump issued a statement that Huawei may now resume trading with American companies.
Should China decide to issue a digital currency similar to Libra, whether through the state or via one of its many big tech companies like Alibaba, it would make for an interesting battle considering China's close trade and political relations with many African countries as compared to the US. Even more interesting considering that Libra has been mostly punted as a solution for emerging countries.
However, a bigger question is: should African countries rather fix their own monetary supply and policies rather than adopt digital currencies linked to the US Dollar or the Chinese Yuan?
This is all assuming that Libra will actually launch as planned in 2020 given the recent pushback it has received from both US and Eurpoean policymakers alike.Share this article via: