Wanlian Securities: Encrypted currency regulation itself is a forced process, and strict supervision of the country will gradually be liberalized.

Wanlian Securities recently released the "Financial Technology Industry July Report: Libra Promotion Blocked, Supply Chain Finance Welcomes New Rules." The report said that long-term treatment of Libra and similar projects does not have to be excessively pessimistic. The cryptocurrency regulation itself is a reverse process, and Libra's progress is also hindered. The practical application of digital currency including Libra in the world is to force the attitude of regulators in various regions. If allowed, the regulator must clarify the appropriate legal framework; if it is against the use, it also needs to provide guidance to clarify the direction of improvement, no matter what the outcome will promote the development of the cryptocurrency industry. Looking forward to the follow-up development, in the context of market forces and institutional profits, the situation will eventually turn to optimism. It is more likely that some countries with more stringent capital controls will restrict the use of Libra or similar projects locally, while other countries may start pilots. However, as the trend of digital currency becomes more and more intractable, it will be subject to the dual pressure of internal public and external cross-border payment needs, and the strict supervision of the country will gradually be liberalized.