Tencent considers that Libra’s launch would affect WeChat Pay and Alipay

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History has shown us that whenever a new product arrives in the market, the other players consider it a threat for their own businesses.
The multinational conglomerate corporation, Tencent Holding Limited, has some reservations about the launch of Facebook’s crypto payment system, the Libra Project. They’ve raised concerns that if the Libra token is launched by Facebook it might affect local Chinese payment services, such as WeChat Pay and Alipay.
Though Tencent sees the potential in Facebook’s project, the Chinese company also fears that Libra can affect those markets where the local currency is not very strong or lacks a basic financial infrastructure.
Even though WeChat Pay and Alipay don’t work to deliver their own cryptocurrencies, the threat is still present for them. Still, we cannot argue with the fact that both payment services are now dominating the local Chinese payment market.
Then, there is also the factor of the country’s ban over any crypto-based activity. Back in 2017, the Chinese government and regulators banned any activity involving cryptocurrencies.
However, since Facebook announced its intention of launching Libra, the Chinese government also started working on a project involving the creation of a national digital currency (CBDC). Some people say that the Chinese crypto project has already been developing at the time Facebook announced Libra.
Libra’s announcement has certainly defined the way lawmakers across the globe are now considering the evolution of the crypto industry. It shows how major global economies across the globe alongside central banks evaluate the possibility of launching a digital currency.
Shortly after announcing Facebook’s Libra launch for 2020, there seemed to be an accelerated movement from the Chinese government in completing its own digital currency.
David Marcus, Head of Calibra, even hinted that if Libra would be derailed it might lead the United States to lose the battle in the global currency race, which would allow China to become the leading party in the digital payment game.

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