Tencent, the parent company of WeChat, released a White Paper concerning Facebook’s Libra. The platform has anticipated threats the stablecoin can impose on the existing Chinese payment platforms. Tencent calls Libra a “bold and radical” idea, which can prove to be “prudent and rational” for Facebook.
The leading Chinese internet guru claims that Libra, if comes to execution, could lure the regions which hold sham traditional money systems and those with very little access to basic financial systems on a global level. But, parallelly, where it possesses the potential to serve all the people, the other Chinese payment networks can not replicate the same.
“Any internet company that has a relatively mature digital payment system, such as WeChat and AliPay, would be threatened by the stablecoin if it is ever launched.” At present, WeChat Pay and AliPay stand out as the most adopted digital payment platforms in the Chinese region. WeChat boasts of one billion active daily users, and AliPay is a straight competition to the network.
The White Paper, published by Tencent, states, “The launch of Libra would significantly affect the course of global expansion for digital companies, especially for those who are not in the Libra consortium.”