Libra white paper, ushered in 100 days.
The reform movement in the late Qing Dynasty failed after a hundred days, but it promoted an important enlightenment. The Libra financial revolution that Facebook launched 100 days ago has not yet reached a conclusion, but it directly allows many countries to face the new currency form of digital currency.
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“Libra may put government sovereignty at risk and will not accept its release on the European continent.”
“Libra will trigger global financial risks.”
Recently, regulators have once again publicly expressed their concerns and resistance to Libra.
In 100 days, Libra was attacked by the enemy. The supervision of art in various countries, the members of the association are uncertain, this is the fate of the changer.
"The existing securities law does not work in front of Libra"
"The existing Securities Law does not work in front of Libra." The chairman of the US Congressional Finance Committee said at an inquiry meeting yesterday evening that the SEC (US Securities and Exchange Commission) did not fulfill its mission as a "Wall Street Police" for Libra. No action is taken, regulations are incomplete and better tools are needed.
SEC Chairman Jay Clayton said that encryption supervision is currently difficult, and each project has differences, and some people are already responsible for regulatory guidance.
On whether Libra is seen as a security issue, Jay Clayton said that whether Libra Coin and Libra investment tokens belong to securities still needs further study. If all these issues are entangled, it seems difficult to define a broader product.
For the risks that Libra brings, Jay Clayton explains: Libra lets more people focus on encryption assets. I don't specifically comment on a particular asset, and encrypting assets is good and risky. Its form is consistent with securities, payment systems, etc., but its supervision is different from others.
100 days inside and outside the pinch
Regarding Libra, the questioning at the national level has never stopped or even become stronger.
On September 17, Libra faced the "Joint Test" of the 26 central banks in Switzerland. This is another "call" after the hearing of the US Senate and the House of Representatives in July.
ECB Executive Committee member Benoit Coeure warned that to allow Libra to operate within the EU, “the threshold for regulatory approval will be very high” .
Switzerland, which is the registered place of the Libra Association, has previously said that it is “relaxing” and has recently been shaken.
The Swiss Financial Market Regulatory Authority (FINMA) said that Libra's financial services extend to capital allocation of credit, market and operational risks, risk concentration and liquidity, and the management of Libra Reserve Funds. Facebook must explain whether Libra can adapt to existing regulatory rules and pass anti-money laundering reviews.
On September 11, Libra has begun to seek a Swiss payment system license.
If the disapproval of regulation and the distrust of the people are only external factors, the Libra Association members seem to be unable to withstand the pressure and begin to show different voices.
In July, four well-known civil rights protection agencies in the United States jointly issued an open letter requesting the founding members of the Libra Association, including Visa, MasterCard, PayPal and Uber, to withdraw from the Libra project.
In the face of this 100-day criticism, only the PayPal family in the association is now standing on the Libra side. On September 14, the Vice President of Investor Relations at PayPal said: "Libra's goals and ambitions are very consistent with PayPal's overall ambitions. We believe in Libra's potential."
On September 23, in an interview with CBDC, IBM expressed its willingness to cooperate with Facebook on cryptocurrency, which may give Libra a shot in the arm.
Libra will one day leave the mother
“From Bitcoin to Ethereum to Libra, digital currency will be the typical “whole overall and partial sum.” Libra's process from white paper to future implementation, whether successful or not, is a number worthy of continuous attention. The case of currency affecting the world economy. ” Zhu Jiaming, dean of the Institute of Economists and Digital Assets, said at the 10th New Moganshan Conference.
The digital economy and digital currencies are forming an increasingly "two-way movement." Zhu Jiaming pointed out that digital currency was born and grown due to the development of the digital economy; the digital economy expanded and expanded due to the maturity of digital currency.
Most people are still optimistic about the future development of Libra and digital currency.
Zhang Shengli, deputy dean of the School of Electronics and Information Engineering at Shenzhen University, told Zinc Link that Libra will succeed in the end and the US government will eventually support it. After all, this is dominated by American companies, and most of the legal currency that is linked is the US dollar.
Shao Yu, chief economist of Orient Securities, believes that the mainstream of the future currency must be digital currency, but it is not sure whether it is the sovereignty of the central bank, or Libra's commercial, or all open source or all decentralized, more like the original private currency.
“Libra is a compromise. It must be approved by existing stakeholders to move to a higher level, but one day it will be separated from its mother. The digital currency must have evolved like this.”
Zhu Min, dean of the National Finance Research Institute of Tsinghua University, said that the idea of a unified digital currency and payment system represented by Libra is likely to promote the transformation of the third international monetary system. This will be a combination of online and offline, bottom-up free-flowing currencies, but under global regulation.
A "digital currency war" without smoke
The central bank, while opposing Libra, is eager to improve its existing payment system and launch its own digital currency.
US lawmakers asked Libra at the July hearing: Why must Facebook do this? Marcus’s answer at the time was: “We have resources and capabilities.”
The resources that have the ability to do this can go far beyond Facebook. Central banks are all in action, and no one wants to hand over the power to formulate a new round of financial game rules, and is reluctant to miss this opportunity to establish a "new Bretton Woods system."
The French Minister of Finance recently spoke with the ECB president and president's successor to create a “public digital currency”.
The German Federal Cabinet also officially approved the draft blockchain strategy on September 18. The German government will support the securities tokenization and trading in digital currencies such as Bitcoin and Ethereum.
The People’s Bank of China launched a competition with Libra to study the five-year digital currency recently entering the closed-loop test phase. Regarding the launch time, Yi Gang, governor of the People's Bank of China, said yesterday: "There is no timetable for the introduction of digital currency."
Like China, Russia, India, Thailand, Turkey and Sweden are among the countries actively preparing for it.
In July, the 11th development plan proposed by the Turkish President showed that “the digital central bank currency based on blockchain will be implemented”.
In addition, Japan, Singapore, Canada and other countries are also considering issuing their own digital currency.
A "digital currency war" without smoke is being staged…
Change is never easy, 100 days is just the beginning. The so-called opposition and support are only the interests of the performance stage.