The new director of China’s Research Institute on Digital Currency, Changchun Mu, believes that even though the world powers do not welcome Facebook’s Libra coin, the stablecoin and its advance is now unstoppable. The Chinese crypto czar officially assumed his role at the Institute on September 6 this year, leading the online education platform.
There have been six lecture issued by the crypto chief – shared on many best cryptocurrency news sites and local media outlets.
In the series, Mu answered a range of crypto questions – ranging from Libra and its technical features – to the potential integration with the international currency system. The Chinese crypto czar also touted the advantages of China’s own digital currency and how it compared to Libra.
“No countries welcome Libra, but it might be unstoppable anyways,” Mu said in the third lecture of the series. “It is very unlikely that one can totally stop people from buying Libra despite rigorous regulations.”
The Chinese crypto czar also explained that the most a central bank could do to prevent Libra from entering a country would be to ask all of their payment institutions and commercial banks not to process any transactions which are related to Libra.
Still, there are a few back channels through which users could circumvent the ban to purchase Libra, as he noted. The czar also cited underground Bitcin trading in China as an example of how it could work.
Even though exchanges in China have blocked Bitcoin transactions and payment institutions (and commercial banks are also prohibited from processing BTC transactions) there are still some agencies which use virtual private networks (VPNs) to buy Bitcoin from foreign exchanges, as Mu noted.
The Chinese crypto czar said that the situation applies to Libra, too. “Even if Facebook is blocked in China, people will use indirect ways to purchase it from abroad once Libra comes out,” Mu said.
As he also said in the latest cryptocurrency news, there was only one possibility to stop Libra. “If the U.S. bans Libra legally, then Libra will certainly be stopped.”
There are a few extreme cases where a country fully embraces Libra, the Chinese crypto czar said. He noted that Zimbabwe (a country with rampant inflation) last year announced that it welcomes any alternative currencies. As such, Zimbabwe is a clear example of such country.
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