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Bitcoin’s meteoric rise, Facebook’s Libra will have China accelerate its digital currency project




Bitcoin's meteoric rise and Libra project would lead China to accelerate its digital currency project
Source: Pixabay

It all started with the US launching an investigation of China’s trading policies in 2017, leading to the imposition of tit-for-tat tariffs on products by both the countries. As tensions between the two countries intensified, what many observed was an opportune moment for cryptocurrencies to replace the legacy institution.

Libra, the ambitious crypto-project led by Facebook in collaboration with industry giants like Uber, PayPal, and Coinbase, and touted to be somewhat “concerning” for China, is now planning to expedite its plans for the creation of its native cryptocurrency. Anthony Pompliano, Co-founder and Partner at Morgan Creek Capital, in a recent interview with Yahoo Finance, commented,

“China is accelerating those plans in response to Libra. They are very worried about Libra being very US-dominated or regulated by the US, they feel like the digital currency would give the US an advantage over China. So China is going to push forward and accelerate to build a central bank regulated digital currency.”

When asked about his views about the project, Pomp stated that the tech giant’s digital wallet project would be bullish for the entire crypto-industry and the wallet would eventually support BTC, ETH and other crypto-assets, tokenized security and even data.

The escalating trade tensions between the countries has reportedly prompted a depreciation in the value of the Chinese currency, which was occasioned by a meteoric rise in Bitcoin’s price. According to the BTC proponent, Bitcoin would soon “eclipse a $100,000,” driven by growing institutional interest and global instability.

Talking about the highly-controversial volatility aspect, Pomp asserted that fluctuation in prices was “not a bad thing,” and that “it is needed for price appreciation.” He added that the oldest cryptocurrency has been the best-performing asset over the last 10 years, outperforming every other asset. According to Pomp, the next key level to watch out is $20k, which would be an ATH for the king coin.

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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.