Central bankers and regulators fear that Libra could threaten the security of the global financial system.
Huang Qifan stated that the chaos created by Libra would be on par with “returning to the primitive society.”
Facebook announced the upcoming launch of their Libra token months ago, but the release of the whitepaper caused a lot of disruption around the world. With concerns over how Libra can be used and the way it could impact the whole of the crypto industry, there have already been many countries who have refused to even allow it. Central bank leaders and regulators around the world expressed fear that the global financial system would be undermined, leading to data privacy abuse and the potential for capital flight.
According to an article with South China Morning Post, a major political figure in China has voiced his own disbelief that the Facebook-developed coin could even succeed, calling the project “delusional.” The former mayor of Chongqing in southwest China, Huang Qifan, remarked that the competition of a decentralized currency on a blockchain ledger with the sovereign fiat currency with the present era. Instead, Qifan states that the more likely digital coin to succeed would be one from a central bank.
On Monday, during a keynote speech at the Bund Summit, Qifan said,
“Some companies are trying to challenge sovereign currencies by issuing bitcoin and Libra – this is delusional to me.”
The Bund Summit is a financial conference, which is hosted in Shanghai.
The former mayor added,
“If commercial companies can issue various currencies, this world will be in chaos. That is equivalent to returning to the primitive society. This is ridiculous, so I personally believe that Facebook’s Libra would never be a success.”
Qifan has been an architect in the city since 2013, and his work between 2014 and 2016 led the gross domestic product (GDP) growth to exceed any other city in China. Though working with now-disgraced Chongqing party chief Bo Xilai at the time, Xilai was arrested and jailed for corruption. However, Qifan has continued on to become the vice-chairman at the China Centre for International Economic Exchanges think tank.
Libra has been faced with the withdrawal of many backers since the whitepaper came out, including Mastercard, Visa, eBay, and PayPal.