China Intends to Acquire $300 Million worth of XRP for Digital Reserves: Verification Check
A viral speculation circulating on social media suggests that China intends to acquire up to $300 million in XRP to establish a strategic crypto reserve, competing with the U.S. However, this assertion is baseless, as the Chinese government is not involved in this transaction.
The initial assumption stems from a recent announcement by Webus International Limited, a Hangzhou-based corporation, which unveiled plans to provide luxury AI-driven chauffeur services and expand its operations globally. To support this growth, Webus aims to secure $300 million in XRP through non-equity financing means, such as bank loans and institutional credit. The intention is to utilize XRP for swift, low-cost global payments associated with their international travel services.
Contrary to popular belief, this move by Webus International has no intention of competing with the U.S. Instead, their objective is to enhance the efficiency of cross-border payments and reinforce their premium chauffeur services by employing XRP for real-time fare settlements and instant refunds.
Recent reports indicate that China has been strengthening its crypto crackdown, with whispers of a new ban even extending to individual crypto ownership, not just trading or mining activities. Rather than purchasing crypto, the Chinese government is focusing its efforts on the development and promotion of its central bank digital currency (CBDC) – the digital yuan.
While both stories involve China and XRP, the assumption that the Chinese government is behind the $300 million XRP purchase is inaccurate. Arrangements for the raise are solely carried out by Webus International and not the Chinese government.
It's essential to differentiate between the two stories, which involve separate entities with diverse objectives. On one hand, Webus International plans to employ XRP for business growth and cross-border payment facilitation. On the other hand, the Chinese government continues its crackdown on crypto activities and works on promoting its CBDC.
Bitcoin, as a popular cryptocurrency, could potentially be an alternative for Webus International in their pursuit of efficient cross-border payment solutions, given its underlying technology and low-cost nature. The Chinese government, however, is focusing on the development of their own digital currency, the digital yuan, rather than investing in bitcoin or other cryptocurrencies for strategic finance purposes.
