How China’s New Cryptocurrency Could Challenge Facebook’s Libra | WSJ

– China’s central bank plans to replace its cash with an alternative, a digital version of
its national currency. Think of it like cash
but only on your phone, a cryptocurrency that’s issued by the People’s Bank of China and backed by the renminbi. – [Narrator] A new global currency. – After Facebook announced the launch of its own cryptocurrency, the central bank accelerated its work. China is already well on its way to becoming a cashless society. Over 600 million Chinese,
almost half the country, already use apps such as Alibaba’s Alipay and Tencent’s WeChat to pay for everything from groceries to bike rentals. Today the two companies
handle close to 90% of China’s third party
mobile payments market. The central bank’s currency will provide a new payment tool to substitute cash. Unlike Alipay or WeChat,
users won’t be limited to paying within one platform. China plans for its crypto to be accepted by any individual or institution, just like banknotes and coins. If Beijing’s plan materialize, China could become the first major nation to go completely cash-free
and that could reverberate across the global financial system. – If it succeed, I would
expect that a large number of other countries will want
to emulate their success. – There is still known
about how the system, known as Digital Currency
Electronic Payments or DCEP will operate and what it will look like. So we examined official
statements and documents to understand why China is pushing hard into this crypto future. This is Mu Changchun. He oversees the central bank’s
digital currency efforts and is the country’s most outspoken authority on the rollout. Since August, he has given a number of speeches on China’s digital yuan, and even launched an online
course about Facebook’s Libra on a popular Chinese education app. (man speaks in foreign language) Facebook’s plans to provide
its two billion users with a brand new digital currency spooked central banks around
the world, including China’s. – They see that Libra could be a way of extending American financial hegemony into the digital currency space as well, say, helping to implement
sanctions and export controls. Beijing historically sought decentralized digital currencies like Bitcoin as a threat to a long standing pillar of its monetary policy capital control. But then in October,
Chinese president Xi Jinping spoke about the important
role of blockchain, endorsing the government’s embrace of the technology that
powers cryptocurrencies. – They’re looking at this and saying, is there some element
of it that we’d like. And actually, what they
found is that blockchain is an excellent technology for tracking. – That could give an
unprecedented level of power for any central bank in the
world over capital movements. Officials say the digital currency will not challenge Alipay and WeChat, but it would have some similarities. Like WeChat and Alipay, it
will need a digital wallet. But unlike the paying platforms, it won’t require a bank account. Instead, commercial banks will
issue the digital wallets. A unique aspect of China’s crypto will be that payments
can be conducted offline. So in case of a natural disaster when the network is down or
if you’re onboard a plane, you can still pay as long
as your phone has power. And authorities promise a major difference will be greater anonymity, but it won’t be absolute anonymity. This patent filed by
the central bank in 2017 shows that it’s researched
ways to track digital cash. Marketers won’t know what
people spend their money on but that information will still be visible to the central bank to a certain extent. – One of the most interesting
aspects of the system is how much data will
the central bank have about where things go ’cause
that’s one of the largest, most important differences between digital currency and cash. – The central bank calls
this controllable anonymity and says big data can help identify certain behavioral characteristics. Officials say tracking transactions will help battle money laundering, tax evasion, and terrorist financing, which is harder to do
with cash transactions. And while the central
bank says it won’t spy on citizen’s everyday transactions, experts are worried that
China’s cryptocurrency will allow greater state surveillance. China’s central bank is
not the only one pursuing a digital state-backed currency, but it is likely to be the
first major one to launch it. Beyond replacing cash, this could internationalize the renminbi, and experts think possibly create less dependency on the US dollar. There’s still a long
way before that happens. Though most governments are
still weary about crypto, the world will be watching
China’s experiment closely.

100 thoughts on “How China’s New Cryptocurrency Could Challenge Facebook’s Libra | WSJ

  1. Facebook's Libra and the Chinese government's "crypto currency" suck equally well. The WSJ missed a perfect opportunity to educate Joe Sixpack about Bitcoin (BTC). It's better! *Also, there are about 613 other cryptocurrencies which claim to be better than Bitcoin. They are not! They are missing the point!

  2. I personally will invest in Prizm cryptocurrency in 2020! I really liked paramining technology – it brings passive income every second on a fully automatic machine! just need to keep your coins in your wallet; good demand on the exchange! new technologies!

  3. Thank you for the video! For those involved in cryptocurrency, it is very important to keep abreast of current events and fresh analytics. I chose a cool PRIZM coin for myself, built on the technology of cryptocurrency mining using the Proof-of-Stake algorithm. Its essence is the generation of new blocks with a special option for the distribution of remuneration, it is handed out to miners taking into account the number of coins in the wallet, which, unlike the time-consuming and energy-intensive POW system, avoids the huge cost of equipment and electricity and brings a steady profit.

  4. Good review, respect for the author. I'm just thrilled with Prizm cryptocurrency! Blockchain technology increases the number of coins in my wallet constantly. This is a wallet in which money never ends!

  5. Every day, postponing the purchase of PRIZM coins, you are postponing your financial independence. I have been using PRIZM for almost 2 years.

  6. Greed has takeover everyone's mind, and those who invest in Bitcoin i have pity on such people wake up until its too late there's no alternative of value storing rather than Gold or silver

  7. it is strange that China decided to release its crypt. They seemed to be initially opposed … well, let's see what comes of this. At the moment, I like prizm for its proof-of-stake technology and its reliability. prizm is our future. It is easy to earn on paramining + 30% of the balance. I think it's cool!

  8. PRIZM cryptocurrency. This is a Russian development. It is in all respects superior to Bitcoin: transaction speed, transaction cost, bandwidth, but most importantly-conceptually! As it develops, it is not centered like all today's cryptocurrencies, including bitcoin." I advise you to pay attention to this coin.

  9. If you look at the PRIZM cryptocurrency, which gives equal opportunities to all network participants. Each user receives the issue of new coins by paramining 5-25% per month on his personal wallet. Cryptocurrency PRIZM with its own blockchain, there is a node for forging blocks. The community is developing because people see a perspective in it.

  10. Hi! Interesting video, thank you! What do you think about advanced technology? There is an advanced PRIZM coin! Brings a good income!

  11. In general, the review is interesting, it may be useful for you to find out that it is most profitable to invest in PROOF OF STAKE cryptocurrencies, such as PRIZM, which are mined in your wallet, regardless of the banking system, you can start with just one coin.

  12. Well, let's see what happens. Why do they want total control .. I like the unique paramining technology created specifically for Prizm. The use of modern eco-crypto-technologies POS, instead of the time-consuming and energy-intensive POW systems, which allows to save significant funds and direct them to the environment, charity and the development of innovative projects.

  13. Thank you for the video. Nowadays, almost everyone knows what cryptocurrency is. How and where it can be purchased, how to increase. The variety of cryptocurrencies is increasing at such a rate that you do not have time to keep track of the release of new coins. And you try with PRIZM!

  14. I have been working with the Prizm cryptocurrency for two years, it is very profitable, promising and easy.

  15. Prizm is the future of digital currencies, because soon there will be no dollar and ruble, bitcoin will also go out soon, and Prizm will live forever!

  16. Thank you for the video. Nowadays, almost everyone knows what cryptocurrency is. How and where it can be purchased, how to increase. The variety of cryptocurrencies is increasing at such a rate that you do not have time to keep track of the release of new coins. And you try with PRIZM!

  17. Cryptocurrencies are backed by decentralized protocols that are trustless, peer to peer, open, permissionless and free to use without limitations of Authoritarian governments or leaders. What China is building…. is not a cryptocurrency

  18. Thank you for the video. Nowadays, almost everyone knows what cryptocurrency is. How and where it can be purchased, how to increase. The variety of cryptocurrencies is increasing at such a rate that you do not have time to keep track of the release of new coins. And you try with PRIZM!

  19. All the poor should support this to be success, because it can stop the rich from money laundring and tax evasion, sound fair huh

  20. Thank you for the valuable material! Can I still review the PRIZM coin ? I am currently investing in the PRIZM currency, what can you say about this coin!? Waiting for your review about PRIZM

  21. Yes, we fully agree with you, and you know about the new PRIZM payment system, it allows everyone to gain financial freedom

  22. I highly recommend that you familiarize yourself with the PRIZM cryptocurrency. technologies help us make money in fact in the air !!!

    Coin generation (which is important) +0.12 to + 1.2% in … DAY !!!

    Open blockchain, ingenious encryption technology, a simplified version of bitcoin!

  23. Do you know about the new PRIZM payment system? which opens up new opportunities for us to build high-YIELD markets at the ECO level!

  24. The prizm system has a Commission for the operation (0.5%), aimed at protecting the P2P network from hacker DdoS attacks. Two-factor mechanism for generating coins: forging and mining balance.

  25. 80% of the comments : bots advertizing PRIZM scam coins
    20% : actual people saying this initiative is another step toward the end of freedom

  26. The cryptocurrency world is growing! Greetings! The video is useful and involves the game. But business is a serious matter, as well-being. It is important what and how you trade. Altcoins are centralized coins and are under the control of others. But technology is being updated, and prizm technology is now the most progressive, as it is decentralized!

  27. Educational video! Take a look at the PRIZM cryptocurrency. Maybe you will be interested in the pyramidal paramining system and you will see all the charms of this currency? Try it, you won’t regret it!

  28. Basically No phone, no money.
    They'll be creating digital money out of this air. Basically they can make whatever amount of money they want.

  29. people are blinded by paranoia and forget about the significance of corruption, money laundering, drug dealing and human trafficking. just because they might get a nervous feeling in their tummy when buying a pack of milk. 

    what do you rather want? 
    A private monopoly like facebook controlling everything and doing shady things in secret such as selling data or being forced to hand it out because the usa forces them to do so?

    or the state handling your currency with the ability to fight crime and corruption? there is a reason why millions of chinese people have been lifted out of poverty every year for decades. the thing about this centralized blockchain technology is that you can't touch the information that is given. there is no accountant who can manipulate certain figures.

    the technology is going to come but the question is who is going to have the power over it. If we all truly cared about data privacy this much, we wouldn't even be on youtube watching this video in the first place.

  30. Do you know about cryptocurrency PRIZM? It is obtained without expensive equipment and without energy consumption …

  31. Libra? Uhhhhh may have blockchain aspects, but this is not considered a crypto currency if its centralized. Stick with the majors: Bitcoin, Ethreum etc.

  32. Thank you for the video! Very interesting. I invest in a PRIZM coin – it is very profitable and promising. Coins are immediately earned on the wallet

  33. Why bother making a new currency though? How can they persuade people to use a new currency when, at the individual user level, it'll be functionally identical to the existing currency (in most everyday cases, anyway)?

  34. China is a dictatorship and not a democracy, the country does not hold elections, it does not respect humans (as they harvest organs of random people), it censors everyone, it bans websites, it kills opposition, it destroys Hong Kong, it builds FAKE ISLANDS, it steals our tech, our jobs and our freedom.

  35. Nice one! I guess soon we will not have regular currency anymore! Have u ever heard about new alternative crypto currency – PRIZM? If u'll decide to know something about it and try, u'll be really happy. Gives a good money, actually. These days i invest in it 🙂

  36. Your video was interesting to me, thank you. The financial world is changing, more and more new cryptocurrencies are appearing. I thought an interesting and promising coin (PZM). In 2018, the PRIZM cryptocurrency was officially registered on the territory of Russia and has the relevant documents: “Certificate of state registration of PRIZM”. PRIZM is sold and bought for different currencies of the world. The generation of coins in your wallet occurs with passive participation. Think about how much electricity is wasted in maintaining transactions in the network of the Bitcoin cryptocurrency blockchain network! PZM has no energy costs, no additional equipment is required. The growth of coins can be hundreds of percent per year.

  37. yeah thats better IF ITS DECENTRALIZED. but if not? well you might be surprised maybe youll have no money tomorrow as you woke up. esp china.. with that govt tracking everything online.. no way.. 😎

  38. "One of his senior aides (of Andrew Yang) argues that Biden, Warren, and Sanders “are running like it’s 1996.” Buttigieg and Amy Klobuchar, the aide said, “are running like it’s 2008. We’re running like it’s 2030.”
    Only Donald Trump, it seems, is running like the year is 2020. “I am,” Yang told me, “his perfect nemesis.”"
    Andrew Yang Could Win This Thing – Buzzfeed

  39. China's Digital Currency is not based on Cryptology. Why can't you people understand the difference? Why don't you educate yourself. This is Digital Fiat. China's entire Fiat system is corrupt and pegged to the U.S. Dollar. With Digital Currency all you have to do is add a 0 to greatly inflate and devalue your currency.

  40. IMO 5G is the key since all #DigitalDollar, #DigitalYuan, #DigitalEuro apps need 5G-LTE-WiFi6-AR networks & phone+tablet+laptops to spread. China & Fake News TV CEO's working in tandem are using #Inpeachment to distract US ( EU is clueless as usual) while they build massive 5G patent portfolio. Will #Trump & #Pelosi realize they are being played w/ stupid TV scandals while China & #Neocons take over 5G #DigitalCurrency business ? If Congress would use their brains they would provide every Student w/ graphic visual apps to actually see the whole #ElectromagneticSpectrum, see all waves & radiation to build solutions using all angles of the problem, how to use some of the #EMWaves to develop new Propulsions, new Health+Nutrition+Financial solutions , new apps. Sadly Washington DC , controlled by neocon #Oligarchs campaign donations will continue to be distracted while China & Middle East neocons steal #5G Economy + Industry from US Taxpayers who financed , with EU Taxpayers, the Internet + the Web development & implementation.

  41. Can some one explain how this would internationalize the Remimbi if the PBOC is the entity issuing the wallet and currency???? Do you think the American government would let its citizens get a wallet and digital currency issued by the PBOC????? Yeah, doubt it.

  42. Imagine this. Your fiat currency goes digital and fiat is outlawed. Now you have no anonymity of transactions. Your data will be sold as always. You will be targeted for advertisements and denied access to health coverage and other necessities because of spending/consumption habits. You will be tracked even more and here is the icing on top of the cake. When negative interest rates become the norm which they will because our “smart leaders” are not so smart you will be forced to pay because you can’t flee out of the banks currency because al other options are illegal.

  43. Think of it like cash.. only on your phone, from an authoritarian government who may murder you for your organs. Coming to an authoritarian regime near you!

  44. If it has a central authority then it's not a Cryptocurrency but rather digital fiat 🚨

    No to a #CashlessSociety #WarOnCASH ⚠

  45. Revelation Chapter 13:16-17 KJV Scriptures sums it up! A Cashless Society would soon be upon us in the near future🌎🌏🌍🤦🏾‍♀️

  46. @ 0:24 the guy said that China is well on its way to becoming a Cashless Society YIKES😱🤦🏾‍♀️And the Scriptures that were written many Centuries ago forewarned us that this would happen one day. In Revelation Chapter 13:16-17 KJV Scriptures. We are definitely in the Days of 2 Timothy Chapter 3🙏🏾

  47. Our world reaches new levels of ignorance.
    When reporters for a magazine as respected as the WSJ confuse a digital form of a traditional currency with a Cryptocurrency

  48. And what exactly is this back off not one country in this world have enough gold to back anything so what is all this crypto and other forms of money back off.. we already know fiat money is backed by nothing

  49. This prophecies is in the bible they going to make a cashless society to take control over the world and like that they would know everything we do

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