Sheng Songcheng: Libra is difficult to become a real currency and will have a serious negative impact on current currency sovereignty.

Sheng Songcheng, a Shanghai Municipal People's Government Counselor and Long Yu, a researcher at the China-Europe Lujiazui International Finance Research Institute, recently pointed out that the modern credit currency system is closely linked to the state and the modern economic and social organization. The national currency issued by the state is supported by national credit, behind which is the wealth of the whole society and the commodities of the transaction. Libra still has no national credit support, no central adjustment mechanism, and how stable its currency value is doubtful, which makes it difficult for Libra to become a real currency. In addition, Libra has the following obvious defects: 1. Affecting the sovereignty status of non-reserve currency countries; 2. Lack of transparent and stable operation mechanism, which threatens financial stability; 3. Weaken the effectiveness of monetary policy and disrupt the economic adjustment cycle; Increased the difficulty of financial supervision. These shortcomings will cause Libra to have a serious negative impact on current monetary sovereignty, financial stability, monetary policy, and financial regulation.