Opinion: Libra may develop into an important non-sovereign currency, and China must consider allowing major companies to join the Libra Council

Recently, Tsinghua University Li Daokui and Li Kebo published the article "Libra's Impact on the RMB Payment System and Countermeasures". According to the article, Libra is essentially the same as Alipay and WeChat payment, except that Alipay and WeChat pay directly linked to the RMB. A dollar of RMB corresponds to a piece of money in WeChat and Alipay. The currency of Libra is a basket of currencies. hook up. The implication behind this difference is that Libra coins have the identity of an independent currency. It does not correspond to any sovereign currency and may develop into an important non-sovereign currency. In view of the inevitable birth of super-sovereign currency, China should expand the cross-border use of the renminbi by using technology innovations such as WeChat payment and Alipay, accelerate the internationalization of the renminbi, strengthen the renminbi, and actively participate in the operation of Libra Management, layout of the new international currency game in the future. The recommendations are as follows: 1. China must adhere to the principle that domestic transactions cannot use the Libra currency, and firmly establish the absolute status of the sovereign currency. 2. Chinese regulatory authorities should state in advance that they can limit the cross-border transactions of Libra in an emergency to prevent large capital flight and economic crisis. 3. As a big country, China must consider getting its major companies to join the Libra Currency Council. 4. China has a large-scale social platform and e-commerce platform companies. It should encourage these platform companies to become more international and implement their own online payment tools in the international arena to enhance the influence of the RMB in international transactions.