Facebook's "currency" A-share blockchain concept stocks are red and multi-party questioning Libra is a big risk

On June 18th, Facebook's long-established cryptocurrency project Libra white paper was released, and plans to launch the cryptocurrency Libra in 2020, which means that Facebook, with 2.6 billion active users, officially entered the currency circle, and social media giants joined. The coin circle is boiling.

It is interesting to note that on Facebook's “currency” news, the “chain circle” and “coin circle” of the blockchain industry have always regarded it as a positive. Affected by this news, on June 19th, the blockchain concept stocks were red, and Omar Electric, Beixinyuan, Huijin Technology and other 5 stocks were daily limit. In fact, before the A-share reaction, the cryptocurrency market had already heard the wind, and after a round of skyrocketing, Bitcoin rushed to the highest peak of $9,300 this year, and the market value exceeded $160 billion.

However, for the blockchain concept stocks, although the good news can improve the stock price in the short term, in the long run, the value of the landing results is the “hard core” technical standard for measuring the blockchain of listed companies. In this regard, some experts told reporters that blockchain technology needs to take a long time to go, and listed companies can focus on the existing modules of blockchain technology combined with practical applications, and explore them in a targeted manner. The use of scene blockchains has prompted blockchain technology to empower the real economy.

On June 19th, the blockchain concept stocks were all red. The Eastern Fortune Choice data showed that as of the close, the blockchain concept stocks rose by nearly 2%, and 69 of the 82 concept stocks rose. Among them, Omar Electric, North Xinyuan, Huijin Technology and other 5 stocks daily limit.

In response to the surge in the blockchain concept stocks, the industry generally linked it to Facebook's currency news. Every time we welcome the blockchain industry, A shares generally respond quickly. In April of this year, the first batch of blockchain information services was well documented, and the wind of “sweet chain” rose in the A-share market. The blockchain concept stocks were all red, 78 of the 80 stocks rose, and 28 stocks including the easy-to-see shares, Anne shares, Chenxin Technology and so on collectively went up, and the blockchain sector became the "share market" of the A-share market. ".

An industry researcher said that in the face of important positive news, the stock market surge is a normal performance of the market, and it also reflects the higher recognition of investors about the concept of blockchain, and is confident of the future development of the industry. "But it should be pointed out that at present, enterprises in the blockchain sector do not have actual blockchain business and revenue, and will not be reflected in the performance in the short term. Investors should be rational and pay more attention to the blockchain field. Long-term healthy development."

Shen Meng, founder of Dafa Yinfa Financial Technology, told the "Securities Daily" reporter that the progress of blockchain technology in China's listed companies is still at a relatively preliminary stage. While listed companies are actively deploying, they can focus on blockchain technology. The existing modules are verified with the actual application, and the targeted blockchain application is explored to promote the blockchain technology to enable the real economy.

It is worth noting that Facebook's cryptocurrency Libra plan is being questioned by all parties in the market, and it remains to be seen whether the plan will work.

According to media reports, financial regulators in Europe and the United States have doubts about Facebook's cryptocurrency Libra plan. They believe that cryptocurrencies lack a clear regulatory framework to protect investors' interests and are difficult to be subject to regulatory constraints, which will affect the current financial system.

Accordingly, the reporter interviewed a number of industry veterans to further understand the potential risks of the cryptocurrency Libra.

In general, the issue of cryptocurrency by Facebook will challenge the currency distribution rights and coinage taxation of sovereign countries. In addition, it will also have an impact in the fields of payment and liquidation. Huang Zhen, a professor at the Central University of Finance and Economics and director of the Institute of Financial Law, According to a reporter from the Securities Daily, it is difficult for sovereign states to control and supervise new infrastructures based on Internet communication technologies, especially those based on blockchains.

Wu Tong, deputy director of the CECBC blockchain special committee and dean of the Digital Economy Business School, told the Securities Daily that Facebook’s cryptocurrency Libra had an impact on foreign exchange control policies of sovereign countries. It has an impact on the efficiency of monetary policy in sovereign countries. At the same time, it should be noted that a major principle of the financial system is investor and consumer protection. Facebook's currency does not have sufficient evidence to show that it can effectively protect investors and consumers.

Libra can be considered as a “sovereign currency” of the Facebook kingdom. In the future, it has a financial infrastructure with nearly 3 billion people trading. Users all over the world. If it is internally issued Libra, which is not bound by traditional borders, will challenge the current traditional sovereignty. Currency, Shen Meng explained to the "Securities Daily" reporter that although other cryptocurrencies have been used for gray or even black transactions, but after all, the coverage of the population is limited, whether technically or practically, Facebook-based Libra may be greatly Zoom in on hidden illegal risks.

Source: Securities Daily

Author: Xing Meng