Tencent Concerned Over Threats from Libra on WeChat Pay

Tencent, the parent company of Chinese messaging giant WeChat Pay, admitted that the release of Facebook’s proposed digital currency would be a threat to existing payment networks.

The Chinese internet giant acknowledged the threat in a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term whitepaper released this week. The company warned that if Libra is released successfully, it will disrupt not only traditional financial institutions but also internet companies with established payment networks.

“If Libra successfully launches, it will undoubtedly significantly bring an impact on the global payment space, and the entire financial industry around the world. It will drive the industry’s innovation and development in user experience, service cost, technology, and business model, it will also lead to further industry reshuffle,” the whitepaper stated.

Bringing Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term features to existing users

With Libra, the social media company is trying to capture the payment transfer market in developing countries. Facebook will also leverage its 1.7 billion existing users to beat its competition in the payments industry.

Meanwhile, two Chinese payments giants - WeChat and AliPay - are hostile towards the cryptocurrencies. They blocked exchanges from opening fiat payments using their gateways.

Libra, however, is facing a massive backlash from the world regulators upon threatening the existing sovereign monetary system. In recent testimony before the Congress in the United States, Mark Zuckerberg revealed that the company is trying to build a payment ecosystem, not competing with central bank-issued fiats.

Amid Facebook’s jump into the crypto sector, the Chinese central bank also started to develop its own digital currency. An official from the central bank earlier revealed that the central bank-backed crypto is very similar to Libra but more centralized.

Zuckerberg also warned Congress that if Facebook fails to introduce its cryptocurrency, China will push to capture the markets with its official cryptocurrency.