Technology

WeChat is also interested in creating their own cryptocurrency

wechat is also interested in having their own cryptocurrency
  • Cryptocurrencies were banned in China two years ago, but Facebook Libra’s announcement is making the Chinese market rethink that decision
  • The first company interested in having their own cryptocurrency is WeChat

If two years ago the People’s Bank of China (PBoC) banned the cryptocurrency in China,  Facebook Libra’s announcement is making them change their minds, according to South China Morning Post. The PBoC is already looking into new alternatives to the sanction, motivated by worries about the impact that Libra may cause on the Chinese cross-border payment methods and financial systems.

If the ban is reconsidered, WeChat could be the first Chinese player to enter the game, according to Forbes. The most popular messaging app in China, with 1.1 billion monthly active users, could be the first to bet on launching their own payment solution to compete with Libra in the Asian market. 

Meanwhile Libra faces the USA Congress, the Chinese are getting ready for future shifts. Another competition between large companies may begin soon, although we cannot know how it will turn out. What we can say is that Libra is changing the game for the payments global market, even before launching.