China says Planned East Asia Crypto will Rival Bitcoin and U.S dollars

China is planning to launch its digital yuan, which can potentially be a game-changing move within the world of digital currency. The plan to roll out the digital coin has been ongoing for a while, as it is poised to rival the U.S. Dollar, Facebook’s Libra, as well as Bitcoin.

Governments scrambling to have their digital currencies

The changing nature of money has kept governments around the world on their toes to maintain a good balance, with many planning to launch their digital currency. This is coming after Bitcoin kicked off over a decade ago and Facebook poised to fully implement its Libra into the digital currency market.

Presently, a prominent group in China has set plans in motion to introduce the East Asia cryptocurrency scheme, as the group plans to use a basket of currencies to compete against the U.S, dollar, Facebook’s libra, and Bitcoin.

Plans include currencies from major East Asian countries

Based on the report, the proposal would include currencies from top East Asian countries, including the Hong Kong dollar, South Korean’ won, Japanese yen, as well as Chinese yuan. The proposal was announced earlier this month during a meeting with the Political Consultative Conference in China.

According to the Nikkei Asian Review report, the plans of the new currency were agreed upon by 10 members of the advisory board. It received widespread publicity because of the attendance of distinguished figures such as Henty Tang, former chief secretary of Hong Kong. Neil Shen, who is the co-founder of Crtip and Venture Capital, was also in attendance.

It’s expected that the regional digital currency will be supported by four currencies weighted to the economic scale, with Japan’s yen and China’s yuan accounting for 20% and 60% respectively.

Crypto scheme will offer a cross-border payment solution

One of the aims of the scheme is to provide a cross-border payment solution to reduce the burdens of international trade at a period where the trade relationship between the U.S. and China is deteriorating while the U.S. keeps utilizing its dollar dominance against its adversaries.

The proposal is coming after China started trailing payments in its cryptocurrency across four major cities.

The rapid growth of China’s digital currency program has spurred more interest and concerns for the U.S to hasten the development of its own digital currency version.

Apart from the Chinese digital currency, other countries all over the world have to start planning on digitalizing their currencies, with Japan, Sweden, and Norway all underway in the process of getting one.