As Facebook joins, the digital currency camp fights against the encirclement

Core Tip: Due to Facebook's participation in the digital currency camp, it caused panic, encirclement and ban on the entire traditional financial institution and the conservative camp. Because the digital currency is now in contrast to traditional forces, it is still outnumbered. Blockchain companies should adopt a technical response approach, but there are also cases that strongly challenge power. The anti-encirclement war of today's digital currency will surely win. This is only a matter of time.

Recently, the news volume of the currency circle has exploded, and many blockchain companies have been making strong news, and the good news has been clearly differentiated. The development of the event can be described by cofferdams and anti-encirclement. From the perspective of communication, this should be the time when communication is the strongest, and it is also the best period for popularizing blockchains and digital currencies.

Digital currency encounters the strongest coffers and bans

Countries that have adopted a policy of contact with digital currencies, represented by the United States, have recently launched intense discussions on digital currencies at the top national regulatory agencies, and the hearings have continued. The US Senate Banking Committee will hold a public hearing on July 30 entitled "Review of the regulatory framework for digital currencies and blockchains."

After the Senate and the House of Representatives held two hearings in succession on the Facebook Libra plan's payment network, this is another hearing on digital currency and blockchain. In response to the Libra hearing on Facebook, Federal Reserve Chairman Jerome Powell warned that this caused “many serious concerns” about privacy, money laundering and consumer protection. Maxine Waters, chairman of the House Financial Services Committee, and other members of Congress have called for Facebook to suspend the project. Even US cannon President Trump gave a bad comment.

When Marcus, the father of Facebook Libra, had to succumb to the traditional forces, he said: Facebook will not introduce Libra digital cryptocurrency until we fully address regulatory concerns and get proper approval.

After looking at the reaction of financial monitoring agencies in various countries after the launch of Libra on Facebook, I learned how cruel the Facebook Libra encirclement. Just a few hours after Facebook announced, French Finance and Finance Minister Bruno Le Maire warned Libra to become a “sovereign currency”. A German politician also called Facebook "shadow banking." The next day, Philip Lowe, the governor of the Bank of Australia, said that there are still many problems to be solved before we adopt the Facebook proposal, and they must come up with a reliable business case. The Indonesian central bank also said: The company's plan should be reviewed. Bank of England Governor Mark Carney also said that Facebook's encryption project will face "highest standards of regulation."

As Facebook joins the digital currency camp, Facebook’s monthly active users exceed 2.2 billion people, and it is inevitable that a stone will stir up thousands of waves, causing panic, encirclement and blockade of the entire traditional financial institutions and conservative camps.

In another case, the battle between the New York Attorney General's Office (NYAG) and Bitfinex and Tether has entered a period of intense heat. In early July, the Office of the Attorney General of New York (NYAG) issued a report on the illegal issuance of securities by Bitfinex and Tether. As a result, Bitfinex, Tether and its affiliates must submit a response to NYAG's latest motion by July 22, and the hearing will be held on July 29. Prior to this, NYAG has already implemented various allegations and suppression on Bitfinex and Tether. These include: $850 million in losses, doubts about the Tether reserve, lack of transparency, suspected fraud, misappropriation of funds, illegal provision of investment products, and bans.

Anti-encirclement tactics

The digital currency camp has been joined by powerful players, causing the strongest coffers and bans of traditional financial institutions. Because the digital currency is now in contrast to traditional forces, it is still outnumbered. Blockchain companies should adopt a technical response approach, but there are also cases that strongly challenge power.

In the face of the crackdown on the regulatory authorities, Bitfinex has more than one tit-for-tat. Bitfinex has also clarified its own "innocence" while claiming that it will vigorously challenge NYAG's ultra vires behavior.

Just yesterday, the last day of the response from Bitfinex and Tether, in the face of various questions from the Office of the Attorney General of New York, Tether General Counsel Stuart Hoegner issued a new statement, again to NYAG in a near-face-to-face manner. The complaint was made in an unusually detailed and tough response.

There is another person who Bitfinex should respond to the strong resistance of the regulatory authorities. Facebook responded with a round-trip tactic. Facebook has expanded its lobbying campaign to help "sell" its upcoming Libra digital currency. In addition to the internal lobbying team, Facebook has hired two lobbying companies with extensive experience in Washington's financial services, Sternhell Group and Cypress Group, to deal with Libra's problems. Tripp Baird of Off Hill Strategies, a lobbying company hired by Facebook, said: "At this point, science is the first and most important step to make people realize what it is and its launch, and let people accept this idea. This is Our current primary focus is also to respond to any questions that may be raised by members of Congress and government officials.” Facebook is trying to increase its lobbying power because both legislators and regulators are questioning Libra’s risk to the financial system and whether it should Allow Libra to move forward.

The current competition between the two blockchain companies and the traditional regulatory authorities should be said to be just the beginning of the contest between the world of digital currencies and traditional institutions. Later, similar and exciting battles are still going on. It should be said that it is difficult to win or lose, but The final victory of the digital currency is just around the corner.

Breakout is just around the corner

The digital currency market experienced the night before dawn. The reason why the Forces nouvelles challenge the traditional financial map is because the whole society has entered the information society, and the digital currency with new information form has emerged. It has rich soil and strong vitality, breaking through the remnants of traditional remnants. far. As the digital currency received pressure from traditional regulators, the market continued to fluctuate with this rhythm, but it also continued to grow.

Under the attack initiated by Facebook Libra, financial institutions in various countries have to make a statement and study countermeasures in anxiety. However, in the case that the trend cannot be stopped, the corresponding department is also set up to study the adaptation of the blockchain technology to bring about changes.

First, the government financial department implements the process of supervising the issuance of virtual currency and will encourage the development of this field.

According to Coindesk's July 24 report, New York State's financial regulator, the New York State Department of Financial Services (NYDFS), is shifting its internal team responsible for overseeing the cryptocurrency-monitoring cryptocurrency business to a new division. The new director, Linda Lacewell, announced that the research and innovation department of the Financial Services Department will track emerging financial technologies and oversee the regulation of virtual currency and issue related licenses. With the continuous development of banking, insurance and regulatory technology innovation, the regulatory structure of financial services needs to evolve and adapt.

Second, the core business of digital currency is constantly recognized by the regulatory authorities.

On the 24th, I saw a news report. The German regulator approved the sale of 280 million US dollars in Ethereum. Blockchain startup Fundament announced on Tuesday that it has been approved by the German financial regulator BaFIN, which will provide a token of 250 million euros ($280 million). Due to proper supervision, there is no minimum investment limit for tokens and it will be open to all individual investors.

Lenovo's SEC approval on July 18th, Blockstack can carry out ICO's blockchain project based on Reg A+, and raises $28 million in token sales. The US and German regulators are recognized as the core business of digital currency, not only the expansion of financing channels for multi-small and medium-sized enterprises, but also a bright spot for the digital currency market, sweeping away the gloom of the digital currency market.

Third, the development of digital currency is changing with each passing day, and the chariot is accelerating and powerful.

Starting from Bitcoin in 2008, digital currency has gradually gained recognition from the society after years of social development. The entry into the elegant hall should be in January 2015, and the Wall Street Journal believes that the blockchain is the biggest innovation in the 500 years. Up to now, the world's largest social networking site, Facebook, has joined the launch of Libra. It is a landmark event in the development of the blockchain and has become a hot topic in the whole society. It is no longer a barrier.

According to the statistics of the State Intellectual Property Office, as of March 31, 2019, the number of patents in China's blockchains was 4,351. The total number of patents published in the first quarter of 2019 was 2,041, far exceeding the 317 in the first quarter of 2018, a year-on-year increase of nearly 6 times, close to half of the total number of patents in 2018. As a result of this development, the number of blockchain patents this year is likely to hit a new high.

According to the World Economic Forum, by 2027, 10% of global GDP is expected to exist on the “chain”. If estimated by the World Bank's 2017 global GDP of 80.68 trillion US dollars, the 2027 cryptocurrency market will have at least 8 trillion US dollars.

We can't predict whether the digital currency market will rise or fall tomorrow, nor can we predict that Facebook's Libra will be officially approved by the regulatory authorities, nor can it predict the timetable for central banks to implement their own digital currency, but we can say: blockchain and numbers The market and technology of money are constantly expanding. The central banks' own digital currency is also certain. The development of the digital economy is sustainable. The anti-encirclement war of today's digital currency will surely win. This is only time. problem.