Zhu Jiaming: Don't ignore the capital behind Facebook, and don't underestimate Libra's technology.

On June 25th, at the press conference on the publication of Libra's World Influence and China's Countermeasures, Professor Zhu Jiaming, the well-known economist and president of the Digital Assets Institute, shared his understanding of libra with the audience. The following is a wonderful sharing of Zhu Jiaming's teacher, organized by Babbitt.

Professor Zhu Jiaming believes that cognition Libra requires a rational, scientific, objective, open and prudent spirit to avoid emotional, delusional, subjective, closed and rash attitudes. Therefore, there needs to be a cognitive, or analytical framework based on Libra's White Paper. This framework contains at least the following five aspects.

One is the value concept of Libra . At present, the basic concepts and concepts proclaimed in the White Paper and the moral tendencies behind it do have the characteristics of commanding heights. In today's world, no enterprise, no economic organization, can avoid its values ​​and social responsibilities. The most dazzling part of this White Paper is that the biggest problem in the contemporary world is the difference between the rich and the poor, and the serious irrationality of the distribution of money and financial resources that exacerbates the gap between the rich and the poor. Not only that, Libra's "Skin Book" proposes a system solution that includes goals and paths. In this sense, Libra's "Book of Fact" is the most proclamation of monetary and financial equality, justice and inclusiveness since the 21st century.

The second is Libra's technology. I don't agree with the underestimation of Libra's technical foundation. For example, the Move language system it created is known for in-depth research. Conceivable, Libra's greatest technological advantage is to fully absorb: (1) the results of all ICTs since the 1970s; (2) Fintech (financial technology) results since the 1990s; (3) encrypted digital currencies over the past decade And blockchain technology results; (4) Facebook itself has done three quasi-currency and payment technology achievements in the past; (5) and new technology development and innovation. So Libra has the courage to say that it will provide a new "infrastructure" that supports its operation, a term that is weighty. This new infrastructure undoubtedly has a strong comprehensive capabilities. Today, there are few commercial organizations and even national teams around the world that can propose and build new financial “infrastructure” capabilities with all-round innovation. Therefore, at least we cannot use our current limited knowledge and experience of technology to simply speculate on Libra's technical foundation and technical team, especially the team's ability to innovate on an integrated basis and to integrate on the basis of innovation.

The third is Libra's capital power. In other words, who controls Facebook? Behind Facebook, the most important are three funds [1]: BlockRock, 13.32%; Vanguard, 9.93%; Fidelity 9.35%, these three funds control Facebook over 20 % of shares. This matter is very worthy of attention because there are many investment institutions behind these three funds, and there are thousands of individuals behind the investment institutions. Therefore, we must see more than 2 billion users in front of Facebook, and we must also see the capital power behind Facebook, especially the emerging capital power that is different from Wall Street. Not only that, we need to observe the stock price fluctuations sent by Facebook. In the past ten days or so, its share price has returned to its highest point since 2018, rising by 5% on the market capitalization of around 500 billion, which is a big number.

The fourth is the beneficiary of Libra. The geographical distribution of Facebook's 2.7 billion users, the most registered users in Asia are in India and Indonesia, in Latin America is Brazil and Mexico, we will find that it controls two of the BRIC countries, and Brazil and India It is now the most promising developing country. And Facebook has achieved diversification both linguistically and religiously. Just a language example, in addition to English, but also Chinese, Spanish, Portuguese, French, German, with its users, penetrated every corner of the world. Such extraordinary penetration means his extraordinary influence and market power.

The fifth is Libra's institutional innovation. When we consider and discuss Facebook's regulatory issues, we must note that its supervision is not just to be supervised, but it is likely to change the traditional thinking of supervision and change the regulatory system. In particular, it is because of the economies of countries around the world. Libra will make it “localized” in the process of landing in the world, namely Libra's continuous localization. In the end, Libra realizes its original intention. In short, because Libra has already achieved the super-sovereignty pattern of “the East is not bright in the West, the North is in the North,” or “Don’t fall”, it is not the attitude of the US government or the EU. Their regulatory intentions can Left and right and bound Libra's global strategy.

In short, I want to repeat my suggestion, understand Libra's potential, need to consider the Libra team's strategic layout awareness, global thinking perspective, technical comprehensive strength, capital strength, and the regional distribution of beneficiaries, classes and age groups.

Finally, I also hope that everyone will pay attention and imagine that Libra, which is discussed today, is based on its White Paper, not Libra's ultimate solution. The Libra White Paper, which is now published, should be said to be a document with a role in inspiring and will be upgraded. I believe that their team will receive feedback from the whole world, make corresponding adjustments and revisions, and continue to enrich. Therefore, we need to have a greater vision to understand Libra as a dynamic and evolving historical event. Now, at least at least half a year away from Libra's test online line, we need to avoid the need for Libra as a long-term economic and monetary financial innovation and observation and thinking that affects the world and history.

Retreat 10,000 steps, even if Libra's creative experiment is not successful, it will provide rich experience and space for human currency and financial history.

thank you all

[1] BlockRock, 13.32%; Vanguard, 9.93%; Fidelity 9.35%, the statistics here are not the single shareholding ratio of these three companies, but include The total shareholding ratio of a series of companies beginning with their letters.