On June 18th, US social media giant Facebook officially released its cryptographic digital currency project, Libra's white paper, which triggered widespread industry attention and discussion. Regarding the Libra project, we invited three early Facebook senior staff to conduct in-depth discussions and exchanges on Libra's challenges and development opportunities.
The three guests of this dialogue are:
Jiang Changhao: Cobo co-founder and CTO, he joined Facebook in 2008. As a former senior research scientist at Facebook, Jiang Changhao led the team to complete the Big Pipe protocol development, which greatly improved the speed of Facebook page loading.
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Wang Huai: Linear Capital CEO & Founder; former Facebook second Chinese engineer and first Chinese R&D manager; with the best-selling book "Building Facebook". He is also an early investor in Cobo .
Yu Chao: Founder and CEO of Sophon Tech, former Fengrui Capital Technology Partner, a former Facebook engineer, focusing on the field of blockchain technology and digital currency quantification transactions.
The following is a wonderful view of the guests:
Why does Facebook do a cryptocurrency project like Libra?
Jiang Changhao : At present, many developing countries around the world are very backward in infrastructure and lack the most basic financial services. This is one of the big reasons behind Facebook's launch of Libra.
From Facebook itself, it also has the motivation to do this. In the past ten years of development, Facebook has successfully established the world's largest social network of connected people. The current application scenario of this social network is mainly to connect people to information dissemination, and it has more value. The application scenario has not been played and implemented.
Although Facebook has 2.7 billion users worldwide, different countries have different facilities and regulatory conditions, and it is difficult to achieve social and financial integration on a global scale. The rapid development of the blockchain over the past decade has opened up ideas for Facebook and compensated for infrastructure through technology, so that more application scenarios can be implemented on the upper social networks.
Wang Huai : There are two main aspects of Facebook's Libra project: First, exchange value requires a carrier, and Facebook tried to make payment-related applications ten years ago. The US credit card system is doing very well, and the blockchain allows Facebook to make new attempts with new technologies.
The benefit of the blockchain is open source, pulling everyone in, and it's all in the league chain. Facebook has 2.7 billion users, which is its core asset, and Facebook is also pulling in a number of companies to join, the alliance chain will reduce the cost of trust, making this payment method more credible. Now that Libra is already an alliance, 100 is just the beginning, and there may be 1,000 in the future. If there is a wide range of uses, other issues such as regulation will become secondary, and the power of business applications may be counter-regulated from the bottom up. Facebook will use commercial applications to drive the development of Libra.
What impact and impact will Libra have on the existing blockchain industry or digital currency?
Jiang Changhao : Facebook's launch of Libra is a huge plus for the digital currency and blockchain industries. The number of users who know or use digital currency around the world is about 30-50 million, compared to the 2.7 billion users owned by Facebook. In terms of numbers, this volume is very small. Facebook's launch of Libra has greatly promoted the understanding of digital currency and blockchain for users outside the blockchain. It can help mainstream people, governments, and media to understand the industry more positively and look at the industry more positively.
Like Libra, Cobo has been convinced since the inception that blockchain is a major revolution in the future of humanity and is committed to infrastructure services within the blockchain ecosystem. Facebook's future launch of the Calibra wallet will also greatly advance the industry and is a win-win situation.
Yan Chao : It doesn't matter if it's a digital currency for investment. It's good if you hold Bitcoin and EOS to hold it because it can get higher exposure. Because of Facebook's reasons, if you continue to pay attention, it is good for the price of the currency. But it is more dangerous for other stable currencies. I personally hold some reservations.
What impact does Libra have on different countries? What are the regulatory challenges?
Jiang Changhao : I don't think Facebook's Libra is taking on the role of a Fed or network central bank. Libra did not issue currency in a vacuum, and all virtual currencies had equivalent legal currency as collateral, not created by themselves. It is still very small in size, and it is difficult to have an impact on some sovereign currencies. The countries that are more affected are countries with relatively poor financial infrastructure or weak supervision, such as Zimbabwe.
The biggest challenge facing Facebook's launch of Libra comes from compliance and regulation. I think that in this process, Facebook needs to communicate with many governments, and it will not be easy to be probable.
Wang Huai : Look back five to ten years, because the inertia of history underestimates many new technologies, new business values, and the transformation of future life forms.
For new things, you can't kill them with a stick. New things in the United States and Europe, many countries are still willing to communicate, so I maintain a cautiously optimistic attitude, and see how it interacts with regulation.
Yan Chao : Personally feel that the currency that is anchored behind it is undoubtedly enhancing their position in the international arena. Not too big for the United States itself, but it will strengthen the dollar hegemony in the international arena. For some small countries with weak sovereign currencies, there will be a greater impact.
What are the future application scenarios of Libra?
Jiang Changhao : Libra's first application scenario is cross-border remittance. This is a big market and pain point: the annual cross-border remittances have at least trillions of dollars in transfers, the average length is 7% of the handling fee, and the light handling fee is $70 billion.
If cross-border remittances go well, the next step is Libra-based payments for online digital goods services such as virtual goods, e-commerce, reading, entertainment, music, and more.
The blockchain technically proves that the decentralized architecture solves the problems of trust, performance, and solution. On Facebook's upper-level social networks, technical solutions to the infrastructure can achieve more application scenarios.
Wang Huai : An interesting application scenario is that Libra can invest in it, and there will be asset types anchored on Libra in the future, depending on whether there will be some financial institutions in the Libra Association in the future.
At the national level, what is Libra's revelation about China?
Jiang Changhao : From the perspective of China, this is a very important topic that needs to be seriously considered at the national level. Because China has experienced rapid economic growth during the past 30 years and China's accession to the WTO, it has become more and more integrated into the global division of labor system and is an important economy.
The future of international politics is changing, and the Chinese economy is increasingly inseparable from the division of labor and cooperation around the world. A great inspiration for Facebook's Libra, it provides a payment medium across borders, a payment currency. If used well, if China has a similar set of solutions, it can greatly help China and other countries in the world to form an industrial cooperation and division of labor.
Source: cobo wallet