Dialogue Nobel Laureate in Economics: If Facebook dominates Libra, power may be greater than US president

Source: Surging News

Author: Jiang Mengying

Digital currency and blockchain technology are the two hot topics in fintech this year.

On November 22, Surging News interviewed Nobel Laureate in Economics Sir Christopher Pissarides during the Chengfang Fintech Forum. In 2018, Pizarides was appointed as an economic consultant by the blockchain-focused Sryptic Labs, along with another Nobel Prize in Economics, Eric Ma Eric Maskin. The principal of the Stanford Cryptography Lab is the 2015 Turing Award winner Whitfield Diffie. He is a world-renowned expert in cryptography and security technology, a member of the Royal Society and a recognized authority on information technology security matters in the industry.

Nobel Laureate in Economics Sir Christopher Pissarides IC Datasheet

Pizarides believes that we will eventually move towards a world of "embracing" digital currencies. Looking ahead, the number of digital transactions is also increasing. But before the digital currency really becomes a reality, you may want to pay attention to the following questions: First, who is the endorser of this digital currency; secondly, it needs a good control and supervision system to supervise fraud and false currency; Price the currency and control the circulation of the currency.

"We need to avoid the crisis of the paper currency issue in the mid-19th century, which ultimately led to gold as a liquid currency. As far as digital currencies are concerned, China should become a leader in digital currencies because China is now online Transaction is ahead, and mobile payment is also ahead. It should also influence and lead the trend in the future. "

The research on the Chinese central bank's digital currency DC / EP has been going on for five years, and now it is ready. The central bank's digital currency DC / EP adopts a two-tier operating system. The digital currency is first exchanged to banks or other operating institutions, and then these institutions are exchanged to the public. The design of DC / EP maintains the attributes and main characteristics of cash, and also meets the needs of portability and anonymity, and is a better tool to replace cash. However, Mark Zuckerberg, CEO of the international social network giant Facebook, bluntly states that part of China's infrastructure is more advanced than the United States, and the United States must build a more modern payment infrastructure on the existing basis. If the United States does not innovate, financial leadership will not be guaranteed.

Surging news: China regards blockchain as an important breakthrough in independent innovation of core technology. How do you see the prospects of blockchain and China's current position in this field?

Pisarides : The Chinese government now attaches great importance to the development of blockchain , and I personally think this is a good thing. Blockchain has a good application scenario, which is applied to transactions and payments.

Blockchain is applied to transactions, transactions can be more transparent, records can be more permanent, fraud can be prevented, and fraud will be less and less. Over the past 2000 years, humans have been used to making records, but there is also a great risk that these records may be tampered with, or may be biased or lost, but the blockchain can solve these problems well.

However, the current virtual currency is still risky and fluctuates as a whole. At present, central banks in various countries do not have clear regulatory opinions. Blockchain supervision also requires further research and cross-border cooperation.

Surging news : Will blockchain technology also compete in different countries in the future? If regulation requires state-to-state cooperation, it appears to be a difficult time for international cooperation.

Pisarides : I think there is a common ground among nations on this point. The blockchain itself also needs more regulation, but it is still completely free. This is why the central bank has not yet made a decision.

I am more optimistic on the issue of blockchain. I don't think you need to worry because this is not a political system. Blockchain is more used for records, accounting, etc. One country does not need to seek to be different from other countries. The difference is that different governments have different levels of disclosure of information and data.

Surging news : Will not form a pattern of competition between countries like 5G technology?

Pisarides : Still different. 5G competition contains many other connotations, unlike the blockchain, which only involves the content of transactions. 5G involves security information such as infrastructure and can store a lot of security-related information. So 5G can cause related politicization risks. But blockchain technology should not, it just involves electronic transactions.

Surging news : Another topic of concern in the fintech field this year is Libra. Why do central banks reject Libra?

Pizarides : When we use the US dollar or the euro, it is because their central bank is credible. Facebook is a big company with a lot of influence but it can't be trusted. For example, they use data but cannot control fake news. So the U.S. central bank and the Senate are very worried. As a company, Facebook is completely independent of the political system. Once they successfully dominate Libra, they will be given too much power in financial and monetary policy. Power. Now many small companies are also issuing small currencies, and they are subject to relatively small regulations, because these are too small for the climate.