Libra Is Best Chance U.S. Has To Beat China In Cryptocurrency Emerging Markets

Andrew Wagner

Facebook's Libra cryptocurrency is key to beating China in the race to develop a digital currency for emerging markets.

RBC Capital Markets recently stated that Facebook's Libra cryptocurrency could be the key to beating China in the race to develop a digital currency for emerging markets, according to Markets Insider.

After a series of meetings and conferences in China, RBC analysts reported that China has expedited its development of the yuan-backed Central Bank Digital Currency (CBDC) following Facebook's revealing its crypto plans in June.

China appears to have the advantage of spreading its cryptocurrency through messaging and payment apps prevalent in China such as Alipay, WeChat, and UnionPay. Libra, on the other hand, has been under intense scrutiny since its announcement. Several of the cryptocurrency's largest backers including Visa, Mastercard, and eBay have since removed themselves from the initiative.

Facebook announced Monday that there is an updated list of 21 firms that are still committed to backing and overseeing Libra. There have been many concerns about Libra, specifically in Congress. The chief executive behind Libra, David Marcus, attended a senate hearing in July attempting to alleviate the concerns of regulators. Facebook CEO Mark Zuckerburg is scheduled to testify in front of Congress on October 23, to further address concerns about the currency.

There is optimism that many companies are still interested in joining Libra and that the firms that left may soon return. Cryptocurrencys are being increasingly popular, and Libra could be the U.S. bell cow when it comes to competing with China.

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Economics, Finance and Investing