China To Launch A Crypto Targeting SWIFT And The US Dollar
The past week marked the return of the bulls in the crypto market.
Bitcoin’s price surged a lot, and there are reportedly three reasons involved, according to Gabor Gurbacs.
“CME Bitcoin futures expired
President Xi Jinping supports blockchain in China.
Crypto Capital CEO arrested. Exchanges, such as Bitfinex, may get some of the seized 850 million back.”
China plans to create a powerful digital asset
Huang Qifan, vice chairman of the China Center for International Economic Exchanges (CCIEE), said that he doesn’t think the Facebook-led Libra stablecoin project will be successful.
The truth is that Ripple’s Brad Garlinghouse also said that Facebook would trigger negative effects upon the crypto space with its controversial project Libra.
He believes that Facebook drew so much scrutiny on itself by revealing too much about Libra.
Now, back to Qifan and what he said, this would leave the door open to the country’s central bank to create a powerful government-backed digital asset.
China plans to become the first country that issues a usable crypto
Huang said that the People’s Bank of China is getting closer to launching its blockchain-enabled financial tech, and this will probably make China the first country in the world to issue a usable crypto.
He said that the existing infrastructure that’s used by enterprises for payments has to be updated, as reported by the online publication the Daily Hodl.
He talked about SWIFT and said that two financial systems are used by the US to control the global economy.
“SWIFT is an outdated, inefficient, and costly payment system. Since the establishment of SWIFT 46 years ago, the technology has been updated slowly, and the efficiency has been relatively low. International wire transfers usually take 3-5 business days to arrive,” he said.
He continued and also addressed the high fees required by SWIFT: “At the same time, SWIFT usually charges a fee of one ten-thousandth of the settlement amount.”
Ripple has also been making increased efforts to surpass SWIFT, the traditional cross-border payments system.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.