The year 2019 has been quite the year for bitcoin. Although it has not seen its value rise like in 2017 it has caught the attention of many banks as well as authorities across the globe that are thinking to implement it into their systems.
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But now bitcoin is set to face an intense rivalry with Facebook’s Libra and China’s very own, “Digital Yuan”. However, Digital Yuan has driven a serious uproar with the governor of People’s Bank of China Mu Changchun stating that like bitcoin it can’t be used for investment in expectation to earn profits and also won’t have plenty of currencies for support.
South China Morning Post reported that the Chinese public has displayed a massive dissatisfaction with this through their social media. One person said that they are removing the factor of enjoyment in the currency while another tweeted that he will prefer to use alternate options such as a Foreign Exchange.China also plans to use this currency so it can improve the command it has on its public.
Andy Mukherjee wrote that China’s digital Yuan which is expected to release in 2020 is quite greater than bitcoin. He mentioned that not only is it funded by the Central bank of the world’s second-biggest economy, but it could also replace the present-day deposit-based banking. This will enable any occupier of the currency to carry out deposits in the Central Bank and thus would enable the state to have complete authority over the transferring of money
Mukherjee alerted that other states would take inspiration from the Chinese in this very quest of digital currency. In the preceding month, Benoît Cœuré an executive board member at the European Central Bank who had previously stated that Bitcoin would give rise to a financial disaster laid out schemes to launch Central Bank of Europe’s very own digital currency.