While Facebook’s cryptocurrency project, Libra, is facing setbacks, it’s not stopping countries worldwide from developing their own cryptocurrencies to compete with the stablecoin. When he faced the US House of Representatives’ Financial Services Committee, regulators grilled Mark Zuckerberg about privacy and security, Not long after, Mastercard, PayPal and Visa backed out of the project. Other backers are also reconsidering their support.
The People’s Bank of China reported launch of their own digital currency also has other countries considering developing their own digital coin. Pilot programs for a digital yuan in Shenzhen and Suzhou promises anonymity and portability. The pilot programs are expected to end in 2020 and then there will be a full launch.
The Riksbank in Sweden is considering developing an e-krona project. They are looking at the legal aspects, Riksbank’s operational role and more. They are reportedly signing a deal with Accenture for a pilot platform. Cash use in Sweden is at an all-time low so Riksbank is considering a safe alternative. The Central Bank of France is ready to test its own digital coin in early 2020. While rumors spread about Canada creating their own cryptocurrency exchange for Bitcoin and Ethereum, The Royal Bank of Canada quickly repudiated the rumors.
The European Central Bank is exploring digital currencies. They have set up a task force to define the purpose of a digital currency, such as reducing costs and making cross-border payments faster if the private providers cannot. The European Central Bank isn’t planning a digital currency right away; they only plan to act if
market-based initiatives fail to offer cheap alternatives for pan-European transactions.
Facebook’s regulatory hurdles and various country’s willingness to explore cryptocurrencies can make it appear that private digital coin providers may be left out in the cold unless they can guarantee their coin’s security and integrity.
