Mutual Chain Pulse Press: On the afternoon of June 18th, the white paper of the Facebook cryptocurrency Libra project was widely discussed in the blockchain field. In response to this white paper, the inter-chain pulse was interviewed for the first time. National special experts, Beihang University, and MIT Bachelor of Science and Technology, together, discussed how Libra will affect the blockchain field.
National Specialist, Beihang University, MIT Bachelor, Ph.D. in Computer Science, University of California at Berkeley, Science Advisor, Blockchain Research Center, University College London, UK, Chief Scientist, Tiande Technology, National Big Data (Guizhou) Comprehensive Experimental Area Block Director of the Chain Internet Lab, Honorary Dean of the CCID Research Institute of CCID (Qingdao)
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Interlinkage Pulse: Introduced in the white paper, Libra's mission is to create a simple, borderless currency and financial infrastructure that serves billions of people. According to Libra's vision, how does Libra affect global finance?
Cai Weide: I think Facebook's Libra will have a huge impact on global finance. In my previous article, "What to do when five tigers enter the blockchain in China," it is mentioned that Facebook's issue of stable currency is the third "tiger" that currently appears, and its commercial impact is the biggest. The world's most important social networking company issues stable currency, challenging the SWIFT cross-border payment market (of course, this is not openly speaking), even if Facebook can't enter China, its payment may enter the Chinese market.
IBM's stable currency is digital legal currency, and JP Morgan Chase's currency is the world's first bank to issue stable currency, and JP Morgan Chase is the most important bank in the United States, which is of great significance. From this perspective, the history of Facebook's currency is small, but the business value and impact is the biggest, because Facebook has a broad user base. It has changed the current financial order.
As mentioned earlier, IBM does not have a banking license, but the issuance of stable currency is equivalent to the establishment of a digital bank; Facebook is the same reason, and its influence is greater than that of traditional banks, because users have the most. Facebook users cover more than 130 countries and regions. Once this digital currency is issued, it is equivalent to setting up a cross-national digital currency. This is more influential than many of the world's largest banks.
Mutual chain pulse: Why is the Libra Foundation in Switzerland? What are the characteristics of Libra's governance compared to other blockchain projects?
Cai Weide: Because Switzerland is a friendly place for digital currency, each place has jurisdiction over registered companies, and Switzerland may treat digital money companies relatively friendly.
I observed that it is based on the Byzantine Fault Tolerance (BFT) consensus mechanism. In terms of governance, it is more like a coalition chain. In this respect, many of my ideas are close to it.
And the business path of Facebook's digital currency is very amazing. Billions of people will join. Basically, banks or financial companies around the world will be very upset, including JP Morgan Chase, which may lose to Facebook. Moreover, this is a legally compliant digital economy that may not be acceptable to many traditional big-name financial institutions, but it is already true.
Mutual chain pulse: How will Libra affect the Fed and other central banks, will it impact their currency rights?
Cai Weide: No, absolutely not!
Facebook coins will only help the dollar, not the dollar!
Many people think that it will replace the dollar, which is whimsical. If the US government wants the Facebook currency to go out of the market, it will go out of the market in two minutes. If you call, you can get off the market, so it is impossible to replace the US dollar.
All of these coins are controlled by the US dollar. The US government wants them to go to the market and get off the market in one minute. It is not understood that the Facebook currency will replace the US dollar. Even more powerful is just a tool of the dollar. We must see this point clearly.
Mutual chain pulse: Libra currency has the biggest impact on the existing Bitcoin, Ripple, and USDT. Why?
Cai Weide: The impact on USDT is the biggest. In my opinion, Facebook's cryptocurrency Libra can completely replace USDT. When the real stable currency appears, the fake will die.
At the same time, the impact on Ripple is also relatively large. I think Ripple uses a fake blockchain. In the previous article "Foreign blockchain financial empire began to form: 170 global banks are willing to join JPMorgan Chase Bank Stabilization Currency Network", I mentioned that the Ruibo system was actually discovered to be a centralized two years ago. System, and is an independent report issued by a third party after many studies. Therefore, Libra coins will have an impact on Ripple and USDT.
Mutual chain pulse: How does Libra partner have no Chinese company and how it will affect China? What do you think China should do?
Cai Weide: Some institutions and scholars in China believe that blockchain will not change the world and believe that blockchain will not be used in financial markets. But as a research scholar, I believe that the development of blockchain is earth-shattering. The same is mentioned in the article "How do five tigers enter the blockchain in China": On June 5, 2019, 14 banks introduced stable currency for settlement. The 14 banks, including Switzerland, Canada, the United States, the United Kingdom, Japan, and Spain, launched the digital Canadian dollar, the euro, the pound, the yen, and the US dollar. At present, foreign countries believe that the blockchain will bring huge changes and work hard for it, but the development of Chinese companies is very lagging behind.
At present, China needs to understand that this is a major financial technology reform in the past 500 years, and China should actively participate.
I have always disapproved of issuing coins and I am not in favor of ICO, but I believe that the blockchain is formally implemented, and the digital economy is developed in a formal, legal and compliant manner. This digital solution is only now beginning. It should be July 18, 2018. .
Mutual chain pulse: Traditional financial institutions such as JP Morgan Chase and UBS are brewing coins. Is Libra a competitive relationship or a complementary relationship?
Cai Weide: In my opinion, 14 traditional banks are similar to “Little Tigers” and are uniting against Facebook as a “big tiger”. They are currently clustered together, but they still do not reach Facebook users covering more than 130 countries and regions around the world.
Interchain Pulse: What new ideas do you have after reading the Libra white paper?
Cai Weide: Many people see the white paper, but it seems to me that it is a super large group. I think it will bring huge changes to the financial market.
Many people think that white paper technology is not creative. Is that true? When you do your own system, you know that uninformed people look at their appearance and see no special terms, so they feel that they are not creative. They misunderstood.
The system can be said to be expandable, it can be issued, and it is an idea to dare to use it on 2 billion people. Only 34 banks in the super-book can't do it (this is what SWIFT said in 2018), and how far 2 billion customers are from 34 banks.
If someone says that he has a chain with a wonderful algorithm, he can do miracles. This is impossible in many situations. Very far from the actual application. Don't be fooled by fake white papers, the more technical you may be the most powerful technology!
At the same time, I observe its white paper, its technology is not very difficult, I think Facebook will launch its cryptocurrency on time in early 2020.
Author: Mutual chain Pulse Editorial Department
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