Sun Tianqi, Chief Accountant of the State Administration of Foreign Exchange: Seeing the six major influences of Libra from a cross-border perspective

On August 10, 2019, Sun Tianqi, chief accountant of the State Administration of Foreign Exchange, summarized Libra's impact on foreign exchange management and cross-border capital flows and countermeasures in a speech. The six major influencers are as follows: First, Libra may challenge China's current foreign exchange management policy framework. Second, illegal cross-border capital flows may increase. Underground money houses may be even more powerful. Third, Libra may strengthen the dominance of the US dollar, and does not rule out Libraization in some of China's domestic transactions. The fourth is to squeeze the space for the internationalization of the renminbi. Fifth, it may expand the scope of the US long arm jurisdiction. Sixth, digital currency may have realistic living space in cross-border business. The suggestions should be as follows: First, Libra is regarded as a foreign currency and must be included in the overall framework of China's foreign exchange management. Second, apart from a very small number of very few cases stipulated by the state, my territory must be settled in RMB. Third, cross-border financial services must be licensed, and financial licenses must have national boundaries.