China’s State Administration of Foreign Exchange stated Facebook’s Libra project must abide by foreign exchange regulations or “it should be banned.”
Sun Tianqi, chief accountant of China’s State Administration of Foreign Exchange (SAFE), spoke on Facebook’s Libra token in an address to the Bund Summit in Shanghai, according to Reuters.
“Financial technology can promote the opening up, innovation and development of a country’s financial market,” said Sun.
“It could also bring a lot of illegal cross-border financial activities. This should be a matter of great concern to all countries, especially emerging markets.”
China’s central bank, the People’s Bank of China (PBoC), is currently exerting downward pressure on the yuan, weakening it to increase Chinese exports.
In July, Zhou Xiaochuan, former governor of the PBoC stated Libra could pose a threat to China’s currency.
Wang Xin, head of the research bureau at the PBoC stated the agency has begun developing a digital yuan in response to Facebook.
On Friday, Chinese President Xi Jinping stated the country needs to “seize the opportunity” afforded by blockchain technology.
The Cyberspace Administration of China stated significant developments of blockchain applications have been made, with more than 500 enterprise projects started.