China Aims To Create A Cryptocurrency, Will They Lift Their Ban On Cryptos?

By Dare Shonubi
Published July 9, 2019 Updated July 10, 2019
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China Aims To Create A Cryptocurrency, Will They Lift Their Ban On Cryptos?

By Dare Shonubi
Published July 9, 2019 Updated July 10, 2019

The People’s Bank of China (PBoC) is reportedly considering to create a cryptocurrency to be used both locally and possibly, globally. According to a report made by South China Morning on Monday, China is looking to review its almost two years ban on cryptocurrencies in the region.

China’s Views On Libra

The news came after China reportedly went against the Libra project in its region which must have instigated other countries like the US and United Kingdom to follow in their footsteps. However, disallowing Libra in China didn’t really end it all as the Chinese government saw a need to create its own cryptocurrency as a way to shut out any other digital currency from gaining any popularity among the Chinese.

During a conference at Peking University’s Institute of Digital Finance, Wang Xin, director of the Chinese central bank’s research bureau, expressed concerns that Facebook’s Libra could potentially make a challenge to Chinese cross-border settlements, monetary policy, and financial dominance. In his words,

“If Libra is widely used for payments … would it be able to function as money and accordingly have a large influence on monetary policy, financial stability, and the international monetary system?”

Already Existing Digital Payments In China

WeChat as an instant messaging platform has about 1.1 billion active monthly users and is the biggest in China. Seconded by Alibaba, WeChat has an already existing payment system called WeChat Pay which transacts in Chinese Yuan through Chinese bank accounts. This network of payment was launched in 2013 and has since then generated around 900 million users locally and globally, especially among travelers and Chinese expats.

With a user base just half of Facebook’s 2.3 billion monthly users, it is reasonable to assume that China is making a smart move in protecting a large number of potential Libra adopters which might be coming from the region.

Libra Versus WeChat

Libra and WeChat Pay seem to have a lot in common. They both support peer-to-peer (P2P) mode of money transfer, as well as online and in-store payments. However, one of the differences that exist is that Libra was designed to allow a cross-border mode of payment while WeChat Pay is solely based on the Chinese Yuan.


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Dare Shonubi
247 Articles
Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development. You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]

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