The risks that the cryptocurrency project Libra creates for the traditional financial system force the People’s Bank of China (PBoC) to devote more resources to developing its own digital currency.
This was announced on Monday by Wang Xin, the head of PBoC research bureau, speaking at the Institute of Digital Finance at Peking University.
“Let’s say that Facebook managed to achieve its goals and Libra began to be used for international payments as money. What impact will it have on monetary policy, financial stability and the international monetary system?” he asked.
Wang also added that, due to the occurrence of such risks, PBoC should very carefully follow the events, as well as speed up the development of its own digital currency. “The development of this direction has been going on for several years. We started quite early, but a lot more needs to be done to consolidate our dominant position,” he noted.
“We cannot allow the US dollar to become the only major currency, and America — the boss in the financial world. Such a development could lead to a series of economic, financial and, in a sense, international consequences,” Van said.
In addition, the representative of PBoC confirmed the information according to which the department is developing its own digital currency, without disclosing the dates.
Technical analysis of Bitcoin (BTC):
Over the past day, bitcoin grew to $12,700, having previously broken through the resistance level of $12,000. After that, bitcoin fell to the support level of $12,000. Let’s wait and see if he can break through the level of $12000. The nearest resistance levels are $12,360, $12,700. The nearest support levels are $12,000, $11,600.
Technical analysis of Ethereum (ETH):
Over the past day, ethereum grew to the resistance level of $316. After that, it went down to the support level of $308. Let’s see if ethereum can use this level as a support for further growth. Now, the price of ethereum is $308.6. The nearest resistance levels are $316, $328. The nearest support levels are $308, $302.
Technical analysis of Ripple (XRP):
Over the past day, ripple broke through the upper sloping boundary of the narrowing triangle, and slightly grew to the resistance level of $0.4030. After that, it fell to the support level of $0.39. Now, the price of ripple is $0.3940. We tend to expect the continuation of the negative movement. The nearest resistance levels are $0.3980, $0.4050. The nearest support levels are $0.39, $0.3820.