Directly impacting the currency distribution rights and coinage rights of various countries, Facebook's attempt to establish a new financial system centered on Switzerland is not bound to go all the way in terms of supervision and compliance.
In early July, the US House of Representatives Financial Services Committee sent a letter to Facebook executives such as Zuckerberg asking them to immediately stop all work on the digital currency/wallet project Libra/Calibra.
Regulators around the world believe that the project lacks regulatory protection and the risk of leaking privacy. This kind of currency is not worth encouraging. Once it fails, it will trigger a financial tsunami.
- US Treasury Secretary: Libra is involved in “national security” and may be abused by terrorists
- Anonymous coin "dead" countdown, where should privacy go?
- Read all the G7's regulatory response to Libra
- The pace of supervision is close: India has drafted a currency violation, and the US exchange has taken the initiative to remove the token.
- In the face of regulation, should the blockchain embrace or escape?
- What issues are explained by the IRS's updated cryptographic tax guide?
The concern comes from the fact that Facebook’s “white paper” on the project has little disclosure of security. In addition, security incidents are no longer isolated. In the first three quarters of 2018, hackers stole nearly $1 billion from cryptocurrency exchanges, and the lack of supervision of the platform provided convenience for hackers.
Facebook's "troublesome" past seems to prove that it can't guarantee the security of users' information.
Bai Shuo, chief scientist of the world blockchain organization, said that although it seems that the "coin circle" is a bad thing, but the "chain" technology is 80% or 90% from the currency circle. We must pay attention to the supervision and management of the "coin circle", and we must also look at it in a realistic manner. While preventing financial risks, we must retain innovative water.
Despite the high attention paid by countries to the digital currency, the central bank’s actions clearly have no market to come quickly, and “wild” innovation is impacting the traditional financial order.
In the absence of traditional financial infrastructure, Facebook is trying to circumvent the existing exchange rate order. If it can quickly build a payment system that is as secure as traditional financial infrastructure with the Internet superimposed blockchain, it will move Countries that pay incomplete or unable to build themselves have great appeal, and a new financial empire will stand side by side with the traditional financial system.
“Facebook is a mobile payment class in the world outside of China.” As Bai Shuo said, “The blockchain is becoming a strong contender for traditional technology implementation in terms of cross-border payments.”
Bai Shuo said: "China has a first-mover advantage in mobile payment, and there is also great potential in the implementation of the blockchain technology and business. But the combination of innovation is still very limited. If you want to avoid being overtaken, it depends on How fast is our movement."
Bai Shuo said that we must actively respond and seize opportunities. It is necessary to give full play to China's first-mover advantage in mobile payment, and fully tap the huge potential in the realization of blockchain technology and business.
Luo Haoyuan, founder of China-Guangdong Joint Investment, said: "Although the progress of the Libra project faces the "encirclement and suppression" of global supervision and compliance, regardless of the outcome, it will touch China's financial regulators to rethink the relationship between financial security and financial innovation. For the discussion of digital currency, and encourage the relevant innovation experiments under the premise of controllable and safe."
Whether it is a worldwide organization such as the IMF, or a developed country in Europe and the United States, the research and application of digital currency has gradually become a trend.
Luo Haoyuan said: "Although digital currency is still a 'forbidden zone' in China, in the past two years, China's attitude towards emerging financial technology has been tolerant and tolerant, which conveys that one-size-fits-all or laissez-faire is not our means of governance."
Source: Technology Daily
Reporter Liu Yan