Zhang Xuechun: Although China's financial technology world is leading, it still needs to take a step forward in digital currency.

Zhang Xuechun, research bureau of the People's Bank of China, issued a paper on “What to do in the reform of the financial supply side”. The article stated that in order to cope with domestic and international shocks, we need a flexible and open financial system. To this end, we need to pay attention to four aspects. Including actively promoting digital currency. On June 18th, Facebook announced that it will launch LIBRA next year. Although it is far from actual operation, it may squeeze the emerging market currency. There are three pain points in the currencies of emerging market countries. One is that the currency value is unstable, the second is mostly weak currency, and the third is that cross-border payment is difficult and exchange costs are high. As Zhou Xiaochuan, the former president of the People's Bank of China, pointed out, LIBRA not only absorbs the lessons that cryptocurrencies have been eager to achieve, but also avoids large fluctuations in currency and speculative components, and targets hard demand in cross-border areas. If LIBRA is successfully launched, it will not only solve the pain points of the currencies of emerging market countries, but also cause the latter to squeeze. In the current competitive situation, despite China's leading financial technology world, it still needs to take a step forward in digital currency.