Chinese Crypto-Currency vs Facebook’s Libra – Spot the Difference

Chinese Crypto-Currency vs Facebook’s Libra - Spot the Difference
Chinese Crypto-Currency vs Facebook’s Libra – Spot the Difference

What is different ( and similar) between the Chinese Crypto-Currency vs Facebook’s Libra ?

According to the article ‘As Facebook’s Libra faces headwinds, China is racing to launch its own global cryptocurrency’ “The People’s Bank of China announced earlier this year that it was working on a digital currency backed by the yuan, reportedly inspired Facebook’s announcement. Analysts and crypto industry leaders are highlighting geopolitical implications of China launching a digital currency first — especially if Libra hits a brick wall with U.S. regulators.”

Positive Money, a London based think tank exploring the idea of a new type of monetary system is organising an interesting workshop about crytocurrencies by focusing in the Chinese Digital Currency and Facebook’s libra. Triggered by the information contained in the aforementioned article, their aim is to try to shed light on the fundamental differences existing between the two crypto-currencies.  One backed by state power and the other, Libra, backed by…, the think tank questions …”what sort of power?”

Lira, on the other hand, is a cryptocurrency announced by Facebook announced that will roll out for use in 2020 with the promise of allowing the platform’s billions of users across the globe to make financial transactions online.   Facebook defines Libra as Libra a “global currency and financial infrastructure”. In other words, it is a blockchain based digital asset built by Facebook. Blockchain is the encrypted technology used by bitcoin and other cryptocurrencies. Facebook claims  that with Libra it will reach people without access to a bank account, and that Libra is the best way to do so.

Positive Money event will compare the two currencies by asking  a few questions such as:

  • who regulates the currency?
  • Who manages it?
  • Is it backed by any ‘reserve’?
  • How do people acquire it? How is its stability ensured?
  • Can the currency go bankrupt?
  • Although similar in many ways, the two crypto-currencies have different aims. They are both trying to undermine the position of the dollar as the main international exchange and reserve currency but for different purposes: in the Chinese case to replace (at least in part) the power that the dollar grants the US, in the Libra case probably to ‘supersede’ the dollar but not its power, that is, to replace the vehicle without replacing the driver….

    Positive Money was founded in 2010. The organization is a not-for-profit  based in London and Brussels that campaigns for reforms to the money and banking system. Positive Money’s mission is “for a money and banking system that enables a fair, democratic, and sustainable economy.”

    This is an event that promises to be interesting to the blockchain community.

    Date:  Wednesday 11 December 2019
    Time:  7:00 PM – 9:00 PM
    Location:

     

    Grove Neighbourhood Centre (Upstairs Hall)
    7 Bradmore Park Road
    Hammersmith
    London
    W6 0DT

    You can rspv this event here.

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