A lot of central banks have launched their own digital currencies, especially after the Facebook currency ‘Libra’ gained great attention even before its launch. It’s another matter that it was postponed due to the strict requirements imposed by the US administration.
Washington believes the launch of digital currencies, especially Libra, will cause the US to gradually lose its dominance and management of global stocks and money markets, as well as central bank issued currencies.
The US is not the only country worried about Facebook and other organisations’ issuance of digital currencies. All countries share the same concern, especially since the monetary system has a direct say on the performance of all economic sectors. It is because digital currencies may not only come under the control of central banks – in fact they could be outside the remit of state institutions as a whole.
And hence, they can be used in illegal channels and for activities such as drug trafficking and financing acts of terrorism, and hurting the writ of sovereign states. Given these considerations, the People’s Bank of China, the country’s central bank, launched its own digital currency, totalling $1.5 million and limited to 500 users. More users can join in future.