The Libra white paper on the Facebook cryptocurrency project released on June 18, 2019 has attracted the attention of many central banks, and believes that the Libra digital currency will have a series of impacts on the global currency issuance, circulation, settlement and other systems. Digital currency represents the future development trend and will become an important carrier for countries in the digital economy era to seize the commanding heights of international competition strategy. It is urgent to strengthen the research on digital currency and plan the future development of China's digital currency.
The impact of Libra's plans on global digital finance
Restructure the cross-border payment settlement service system. Facebook's digital currency Libra plans to have a significant and far-reaching impact on the global cross-border payment settlement service system. The traditional service system that relies on major international currencies and central banks' cross-border payment settlement will likely be gradually overturned. Libra coins will likely become the most universal “currency” in the world, and can be directly exchanged and settled with the currencies of most countries in the world. Libra platform will become the most cross-border payment settlement platform with the most currency settlement types. Most countries' currencies can be exchanged for the third country's currency through the Libra platform. In the long run, the Libra platform and its currency exchange mechanism will have a profound impact on the formation of exchange rates between currencies.
Restructure the global mobile payment market. Facebook's digital currency Libra plans will have a major impact on the global mobile payment market landscape, which may lead to a new reshuffle in the global mobile payment market. Compared with other mobile payment methods such as credit card, Alipay, WeChat payment, ApplePay, etc., Libra currency payment is not subject to payment channels such as VISA, Mastcard, UnionPay, and Internet. As long as there is Internet access, Libra can be used directly. In addition, Libra currency settlement is not subject to the central bank's payment settlement system, and can be settled at any time across borders, with timeliness and convenience greatly improved. These two advantages, coupled with the huge user base and rich application scenarios of the Libra platform, will provide a broad development market for Libra currency payments.
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Reconstruct the global international currency development pattern. Facebook's digital currency Libra plans to have a profound and far-reaching impact on the global international currency development pattern. Libra currency may become a more common international currency above the US dollar, the euro and other international currencies, and it may become the digital era to seize the international digital currency. The substitute for the dominant power. Compared with international currencies such as the US dollar and the euro, Libra currency is more convenient for currency exchange and settlement. In addition, Libra coins can occupy more first-line application scenarios based on their own platforms, and can be used in all parts of the world as long as they have Internet access, and they can use real universal international currency, which has more extensive and grounded application scenarios than the current international currency.
Increased risk of cross-border financial crime. If central banks use Libra's digital currency in the country, only as an Internet information service, and not promoted to the level of financial innovation application, then the Facebook digital currency Libra plans to open the Pandora's Box for cross-border financial crimes. . The Libra platform may become a hotbed of money laundering, illegal transfer of large amounts of assets, and other illegal activities.
Increased national financial regulation risks. Although the Libra platform does not involve Internet financial exclusion zones such as storage and storage, the Libra platform provides extremely convenient cross-border payment settlement services, which will also increase the risk of national financial regulation. If the Libra platform currency payment settlement service is not interconnected with the central bank payment settlement supervision system, then the state will be unable to control the economic activities of payment settlement through the Libra platform. For example, relying on the Libra platform for money laundering, illegal transfer of large amounts of domestic funds to foreign countries, cross-border trade and other economic activities, the state can not control. When this situation is not established with China's online payment supervision platform, it is the same for countries with mobile payment economic activities such as Alipay and WeChat payment. A large number of economic activities relying on the Libra platform are difficult to control, greatly increasing the difficulty and risks of financial policy formulation, financial regulation, and even systemic risks. In the long run, the Libra platform may become an important stage for the international short-selling institutions to short the economy of a country, and even become a trigger for the financial crisis.
Suggestions on the development of digital currency in China
Support the international development of mobile payment companies. Based on Libra's digital currency platform and its social networking platform, Facebook has enriched its scene resources and is likely to become the world's largest mobile payment service and digital currency service provider. It will expand its overseas mobile market for major mobile payment service providers such as Alipay and WeChat. It has brought about a major impact and has a disruptive impact on the global market for Internet companies in China. From the perspectives of policy support, diplomatic intervention, and financial support, China should help Chinese Internet companies to go global, accelerate the development and deployment of mobile payment service markets in other countries, and seize the leading role in financial infrastructure construction and operation in the digital economy era.
Accelerate the establishment of China's digital currency development system. Digital currency represents the development trend of the currency, and the digital currency issuance and trading platform is the core financial infrastructure of the digital economy era. The United States is likely to support and use Facebook's Libra digital currency to seize the dollar hegemony of the digital economy era, build the dual advantages of Internet and financial development, and establish the permanent advantage of the United States in the digital economy era. Therefore, China should speed up research on the development of digital currency, build a national digital currency promotion development system as soon as possible, accelerate the establishment of digital currency operation infrastructure, promote digital currency applications, formulate digital and monetary policy measures, and provide innovative application tests and prudence for the development of digital currency. Inclusive development environment.
Accelerate the development of a digital currency regulatory system. The application of new technologies will have a new impact on the existing policy system. Digital currency is very different from traditional currency. It has new features in the aspects of distribution, circulation and settlement. These new features will be available to existing currencies. The implementation of the financial, economic and other policy systems has brought new difficulties. Adapting to the trend of new technology application and accelerating the improvement of relevant systems can better protect the healthy development of digital currency. It is necessary to speed up the establishment of rules and regulations, regulatory rules and laws and regulations in the issuance, circulation, trading, settlement, security and other aspects of digital currency, so that digital currency can operate smoothly in the cage of the system.
Construct a digital currency regulatory technology system. The application of new technologies will bring new impacts on existing regulatory measures. In the face of the development trend of digital currency, it is necessary to innovate the means of supervision and improve the technical support capability of supervision. It is necessary to actively use new technologies such as the Internet, big data, and artificial intelligence to accelerate the construction of a networked, platformized, and intelligent digital currency regulatory system to improve the real-time control, deep insight, and intelligent management of digital currency operations.
With the advent of the digital economy era, all areas of the economy and society are accelerating the digital transformation, and the financial sector is no exception. Digital currency is an important direction for the development of digital currency, and the future development is unstoppable. However, the digitization of money is very different from the digitization of other fields. The currency has strong financial attributes and is highly correlated with various economic, financial, fiscal, taxation, and security policies. The development measures are slightly less cautious and may even trigger the economy. Social destructive shocks. Therefore, the promotion of digital currency development does not allow trial and error, and must be steadily and steadily promoted under the premise of being safe, controllable and manageable.
Source: Learning Times, August 16, 2019, 03 edition
Author: Zhou Feng