Li Lihui: Super-sovereign digital currency is likely to fundamentally reconstruct the global monetary system

Li Lihui, former head of the Bank of China and head of the China Internet Finance Association blockchain working group, published an article in the China Finance magazine sponsored by the People's Bank of China. The basic structure of the legal digital currency is not consistent. For example, Whether it is based on the account token or based on the account Account, whether it is for retail service or wholesale service, is anchored or non-anchored, and needs further argumentation and decision. He believes that Libra poses an unprecedented challenge to the existing monetary system: transcending national sovereignty, surpassing central banks and crossing commercial banks. Super-sovereign digital currencies have the potential to fundamentally reconstruct the global monetary system. First, it may impact the sovereign currency status. Second, it may reshape the currency hegemony. Third, it may form a financial system that spans commercial banks. Fourth, it may affect the process of RMB internationalization. Li Lihui finally said that he should actively respond to the challenges brought about by the development of digital currency. First, master the leading role of digital technology and digital economy, secondly, accelerate the construction of digital financial system, and third, strengthen international coordination.