Faced with the possibilities and threat posed by Facebook’s Libra cryptocurrency project, China’s central bank should rethink its plan for a national digital currency, according to its former head.

As reported by the South China Morning Post, former People’s Bank of China (PBoC) governor Zhou Xiaochuan said at an event in Beijing this week that, with its Libra offering, Facebook had shown that there is potential for a “strong” global cryptocurrency that can be exchanged for fiat currencies.

While Libra may help developing countries improve their payment systems, Zhou said, it would also pose a threat to existing cross-border payments systems and could weaken national currencies.