Over the last decade, the Chinese firm Huawei has grown to become a giant frontrunner in the technological arena. Huawei’s CEO, Ren Zengfei, opined that the giant firm has the capability and the competence to compete with the giant Facebook by similarly issuing its cryptocurrency. Facebook, a US situated firm and a giant in social media technology has already come up with its cryptocurrency that goes by the name of Libra.
The CEO announced that there was no reason for Huawei to stand by waiting and watching while its competitors continue to develop and advance cryptocurrencies of their own. He considers it possible for Huawei to similarly come up with, develop and promote a cryptocurrency of its own, citing facts that the firm had enough and ample technical and financial capabilities to do so.
He further added that an economy like China is much more powerful and capable than a single digital company like Facebook and that such a currency developed by China under Huawei could be a striking force as crucial if not more significant than that of Facebook’s Libra.
This comment by Huawei’s CEO comes after deliberations on concerns by the Chinese Central Bank that appears to be considering Libra as a threat to the country’s overall financial system. The director of the People’s Bank of China Mr. Wang Xin notes “Facebook’s Libra will be to a great extent linked to the US dollar and this he says would put China at a great and significant disadvantage. If this were the case, it would have a series of economic, financial, and even international political consequences,” he is quoted as saying.
As of present Beijing is widely reported to have plans underway and even actually working on a cryptocurrency of its own. The details and specifications of this cryptocurrency, however, are still unknown at this time. Also though China is currently and may be concerned about the situation, it should be noted that Facebook’s Libra is as of yet not out of the woods. The United States is still in consideration and deliberation on Facebook’s Libra offer, taking into perspective the potential dangers that such an influential cryptocurrency could create. This is not only from a social perspective but also and equally important from a security and economic point of view.
Facebook’s Libra offers a new situation to which the magnitude thereof is yet to be recognized. Many crypto industry players have come out with bold and robust criticisms to this fact. They criticize the legislators saying that such moves are efforts to try to stifle the innovation of Facebook’s Libra even before the product has had the opportunity to exist and be in use. They say that such actions are what lead to Innovations in the technological area of advancements in today’s world to wither off and die taking away with them massive opportunities that would have ended up making life better for everyone.
According to Tim Draper a billionaire investor opining on CNBC, the American government’s desire and disposition to regulate everything including Facebook and Facebook’s Libra, even though the former has not yet released its product is a move that should be ridiculed and castigated. He accuses regulators of clustering around this innovation, which he says is something that should be discouraged.
The opinion of Huawei’s CEO that China could similarly develop a cryptocurrency of their own is very much a possible reality. If they indeed decide to move on with this course of action, it will be a sure fuel addition to the fire of the trade Wars between the two countries that are as of currently being witnessed.