The CEO of Sogou, China’s second largest search engine, has said that Facebook’s cryptocurrency — Libra — will change the world. These changes, he writes, will be a new challenge for China.
Chinese technology leaders are taking notice of Facebook’s new cryptocurrency. Libra is causing a stir in the country, with many saying that it is a sign that China needs to catch up.
Wang Xiaochuan, CEO of Sogou, has written on social media platform Weibo that Libra will usher in the “Internet 3.0.” Its global vision and broad alliances give the cryptocurrency a huge advantage. Xiaochuan says that he saw this coming based on previous predictions he made last year.
Wang Xiaochuan, CEO of Sogou (China's No.2 Internet search engine) on #Libra: Internet 3.0 is coming… Facebook has huge advantages, with global vision, broad alliance and endorsement of its 2.7 billion users. The world will be different. This will be a new challenge to China.
— cnLedger (@cnLedger) June 19, 2019
The outspoken CEO has previously commented on other blockchain projects. For example, he told reporters earlier this month that Justin Sun’s $4.5M lunch with Warren Buffet is “marketing genius.” However, he has repeatedly been skeptical of Sun’s tactics, in the past.
Xiaochuan is well-known in China for being a computer science prodigy. At age 18, he won gold for China at the International Olympic Informatics Competition. He is thus on the front lines of China’s digital revolution and commonly opines his thoughts on Weibo.
Despite being relatively optimistic on blockchain technology, Xiaochuan seems certain that Facebook’s Libra could be a watershed moment for the entire industry. Moreover, it could finally push China’s legislators to allow for its own digital currencies. Some analysts have also drawn a comparison between Alipay and Libra — given that Alibaba is likely watching Facebook’s developments closely.
China and Cryptocurrency
China has been open to blockchain adoption for years now, but has been hostile to cryptocurrencies. The country is known for its bans on cryptocurrency trading and mining, which has been in effect for a long time. However, Facebook’s Libra is causing some tech leaders in the country to believe that times may now be changing.
If Facebook is successful, we could very well see major Chinese social media platforms follow its lead.
Do you believe Chinese social media platforms will someday issue their own cryptocurrencies? Let us know your thoughts below.