Experts argued: Libra turned out, what impact will the central bank's digital currency have?

Libra was born, and in more than three months, more and more people have invested in research on digital currency, and there has been a wave of discussion on digital currency around the world. At the same time, China is also stepping up the introduction of central bank digital currency. What impact will Libra and the central bank's digital currency have on us, and what impact will it have on traditional finance and the entire digital research ecosystem? What are the impacts at the technical level, the financial level and our living level?

For the above-mentioned questions, at the "China 5G Chain Network Industry Innovation Summit" held on the afternoon of September 7, Yong Bai, an independent monetary and financial researcher, Hu Jie, a professor of advanced finance at Shanghai, and Guo Yu, founder of Ambi Lab, Zhong Lun Senior lawyer Fan Xiaojuan, Ashan Financial Technology CTO Shuo Shuo, Ling Yun Jinke founder Deng Qi, Nanjing Zhongcheng Block Chain Research Institute Ma Qiang, Hu Fu co-founder Chen Xiaohai, blockchain researcher Wang Yuanming, BitTribeLab Co-founder & CEO Liu Tao, Bai Zhiji Shishi CTO Zou Jie and other vertical experts conducted an in-depth discussion on the theme of “Libra and the central bank digital currency”.

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(From left to right: Long Baitao, Hu Jie, Deng Qi, Fan Xiaojuan, Shuo Shuo, Vice Chairman of the North American Blockchain Foundation, Zhu Xi)

Looking at the impact of Libra from a currency perspective

Long Baizhen believes that because Libra is a consortium of private institutions, from the perspective of the coinage tax, the coinage tax is actually exclusive to a private institution. This business model is very evil . Libra is very confusing and can easily give the image of a geek who challenges the hegemony of the dollar. However, Libra may only become an assistant to the globalization of the US dollar, and Libra has clearly ruled out that the RMB is the reserve currency, and the participating entities are American companies. China may not even become the FSB and BIS. This is to be understood clearly. . In response, China will participate in the work of IB and other international organizations such as BIS, FSB, and IMF, and strive to play a role in actively studying and studying Libra's operational mechanism and governance structure in policy formulation and regulatory development.

Hu Jie believes that Libra is a new type of currency, but only a new form of technology. Its essence does not deviate from the traditional currency issuance logic . Specifically, it is a currency issued by the traditional currency board mechanism, and the principle is similar to Hong Kong dollars. The main difference with the Hong Kong dollar is that the Hong Kong dollar is anchored in the US dollar single currency, and it anchors a basket of legal currency, logically similar to the Chinese central bank's eSDR promoted by the IMF. Assuming that we do not let Libra coins land in China, its impact on the domestic market can be ignored. Its competition for the renminbi is mainly in the international market, that is, in addition to the US dollar, the euro, the pound sterling, and the yen, there is a strong foreign currency. The technical characteristics of its blockchain are not the key points affecting China's economy and finance.

The central bank's digital currency CBDC is on the verge of coming, and China's blockchain market is welcoming huge opportunities.

Long Baiyu said that the accelerated launch of CBDC by the central bank has a very large impact on China's blockchain market and is very positive . Although there is no public policy on digital currency, it can at least be discussed openly, and the corresponding areas can be delineated, and experiments can be conducted. This experiment also encourages the participation of private organizations. Therefore, Long Baizhen believes that it is a huge benefit .

Correspondence and interpretation of national regulatory policies

Countries have different regulatory attitudes toward a digital currency such as Libra. Fan Xiaojuan summed up three attitudes :

One is that the countries like the United States, the United Kingdom, Switzerland, and Singapore generally accept and affirm, but Libra is considered to be in compliance with regulations, including the United States Hearings, which are all in line with supervision .

The other is a country like Thailand and Israel. They are very welcome and positive. If Libra is released, they should actively welcome it.

The third viewpoint, represented by the European Union, Germany, Japan, South Korea, Australia and India, is very cautious and neutral about the emergence of Libra, and believes that the emergence of Libra will have a certain impact on the financial system. Especially like Germany, they may also think that the euro is very good, don't engage in the mess of digital currency, so this may be the view of the mainstream three countries.

At the regulatory level in various countries, the main points of concern are the following :

First, anti-money laundering, anti-terrorist financing activities . In terms of KYC, there are some policies in various countries. For example, in Switzerland, a new regulation has just been issued in August. The institutions that require the use of blockchains to provide financial services must follow the rules of anti-money laundering to formulate guidelines. Companies that make blockchains provide financial services are subject to strict anti-money laundering rules.

Second, anti-monopoly and anti-unfair competition.

Third, user data protection , this has always been very important in the Internet industry. Since the EU's GDPR rules came out, this issue has been highly valued by everyone.

Fourth, Libra will mainly be used for payment settlement . This function is completed by the banks of various countries or by some designated financial institutions. It is not a company that can do the payment business, and the corresponding license is required.

Fifth, foreign exchange control , this is represented by China. We are a country with foreign exchange control. If Libra wants to land in China, it must be a huge difficulty.

In addition to these issues, if Libra is to enter the stage of free exchange in the future, there may be management problems in the secondary market, including how to increase taxes on digital currency or digital assets, and various regulatory agencies will consider these issues.

In general, Libra will be designed in accordance with the current legal system, or it will first be reduced to a form suitable for modern legal systems. As the technology continues to evolve, the law will be updated, and Libra will be transformed at this time. This may be a process in which technology and law mutually restrict each other and jointly promote social and economic development.

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(From left to right: Zou Jie, Wang Yuanming, Chen Xiaohai, Ma Qiang, Guo Yu, Liu Tao, Chairman of the North American Blockchain Foundation, Qi Wenyan)

Why should Libra use the Rust language?

Guo Yu believes that whether a language is popular and whether the language can occupy the high market. There are many factors. The biggest factor is that you must have a suitable scenario first . The earliest like C language and JAVA are accompanied by the rise of Internet technology.

The Rust language will become the new language, mainly due to the high cost of operation and maintenance of JAVA . The other one is the popular js on the WAB side. JS is too flexible, and people who write js have a lot of low-cost products. Now it is GO, GO has a lot of performance loss , that is, GO can only be used in the cloud, it can't Used on the mobile phone side, it can't be used in the WAB front end. So at this time, everyone looked for a long time and found that the Rust language is quite good, although its threshold is very high. And because the Rust language has been accumulated for a long time, it is suitable for the current blockchain scenario, and the requirements for a single node are very high.

Libra's smart contract takes advantage of the MOVE language

Ma Qiang said that the reason why the MOVE language is used is because it evades a lot of expertise in the upper level, which makes our ordinary business people look like we don't need to know . For example, its open interface is a transfer. To go back, there is a particularly famous stolen case before Ethereum. The person who wrote the contract at the time was not a practitioner in the financial industry. He made mistakes in people in our financial industry. Look is very low-level, because his business logic and programming logic is wrong, that is, he is the first to add money to you here or give me the money, because there is a network layer transmission problem and language programming confirm question.

The MOVE language can package this whole, without thinking about whether I am doing it here or doing it here and then doing the transfer. This layer is a very advanced place we say Libra. It is from this level that it solves some of the problems of business security and product security design.

Wang Yuanming believes that the MOVE language separates the status of the contract . In Ethereum, we use the contract account, all of our user status is stored in the directory of the contract account, and the MOVE language separates each state. Come, everyone has a directory, not all of them in the directory of the contract account, so there are several advantages to the split, one is that its contract itself is stateless, which can increase the possibility of use. The second is that states can be nested with each other, something that other code can't do.

Libra VS BTC, who is safer?

Chen Xiaohai believes that comparing Libra's security and Bitcoin security from this stage is not the same latitude problem . Libra's logic is different from Bitcoin. Libra can be regarded as anchoring a mainstream mainstream currency or Stable currency for legal currency in various countries. From the anchor of value, it is more stable and has actual assets. From this perspective, he is safe.

Wang Yuanming said that from a technical point of view, Libra's security risk is even greater , because Bitcoin is written on the chain and there is nothing for you to expand. Libra can customize the logic on the chain, which proves that if it is likely to have a loophole, this aspect is why he wants to make a MOVE language.

What will the Libra wallet look like in the future?

Chen Xiaohai said that what kind of form the Libra wallet will look like in the future, everyone should imagine what the future wallet will look like. In the country where the assets anchored by Libra are located, we can use mobile phones or chips to freely exchange anchored currency in the local area.

Liu Tao believes that the wallet is a kind of end. It doesn't matter what the length of the end is . Just like the WeChat, Alipay, and even the vibrato and public comment we use now, these functions are all from the macro point of view. Consistent is the transmission and interaction of information. It’s just now on different tracks and will eventually get one. So the future of this wallet, whether it is Libra wallet or digital currency wallet, as long as he can complete the information transmission, it does not matter. The important thing is that this information transmission is not efficient, decentralized, and the user can maximize the control.

Future infrastructure construction will further promote this aspect, and the processing capacity on the side is strong enough to meet the needs of users . For example, I want to send you a message, payment, I don't care if I use WeChat, or Alipay to send you a message, you do not care what you use to receive. All I need to care about is one of your IDs. It is enough for us to abide by one agreement.

Does Libra need a Layer 2 network?

Liu Tao said that Libra needs a Layer 2 network. As its current TPS can reach 1000, the future will still face the problem of building a Layer 2 network , but its association nodes and distribution. The quotient node is the natural advantage of building a Layer 2 network, but these nodes are not enough to support the Layer 2 network, depending on how Libra develops.

Taking this opportunity, Liu Tao also proposed that BitTribeLab is implementing a lightning network that is more suitable for mobile phone use to implement M-lighting after C-lighting, LND and Eclair. It mainly solves the problem of running as background service on mobile, Android and iOS. , to achieve the true meaning of the lightning network node. The implementation of M-lighting has already completed almost 70% of the workload. I will use this opportunity to announce its open source. You can search for liblightning-network on github to view the source code. You can also join the development. M-lightning includes all the features of the Lightning Network, compiled into an executable file that can be packaged into the Androdi or IOS App.

The M-lightning service runs in the background and provides a JSON-RPC interface externally. It is easy for mobile developers to integrate lightning networks in their own apps. M-lighting uses Boost.Asio to implement the underlying network transmission, which can handle a large number of network connections and data transmission. It can be used as a relay node for high-performance lightning network services, and server developers can earn lightning network routing fees.

Libra's main online line time guess

Zou Jie is expected to go online in June and July next year and may be delayed. Wang Yuanming believes that from the perspective of compliance, it is necessary to look at luck. From the perspective of technology maturity, it will take at least a year . Chen Xiaohai believes that although the Fed welcomes civil institutions that can help the internationalization of the US dollar. But the Fed has also thrown a lot of questions, so the supervision process must be slower than the original. Secondly, it still takes more time to manage the system. Ma Qiang said that various industries and industries are discussing the degree of Libra-related and will actively communicate with Libra. This may be faster. From a security perspective, such a big project will take at least a year.