Bai Shuo: It is recommended that China establish an independent system that can compete with Libra.

Babbitt News, on the morning of July 26, the " Ant Block Chain CHAINAGE Innovation Day " hosted by Ant Financial was held in Hangzhou.

At the event, Bai Shuo , director of the Chinaledger Technical Committee and former chief engineer of the Shanghai Stock Exchange, delivered a speech entitled “ Libra and Global Industry Competition ”.

The picture shows Bai Shuo

In his speech, he said that to some extent, the digital currency on the blockchain can be divided into three categories: legal digital currency, business circle currency/point (such as Q currency), virtual currency (such as bitcoin) (as shown below ) ), these three types of digital currencies are not completely independent, but have an intersection.

• Changdao Iced Tea, which has transformed its blockchain, doubled its share price, and delisted, was exposed to insider trading after a lapse of one year.
• Huawei Ren Zhengfei: China can issue its own Libra
• Mykings mine botnet update infrastructure, new wallet revenue exceeds 600,000

The intersection of virtual currency and business circle currency/point is not traded or circulated, and the business circle currency becomes virtual currency if it is traded or circulated;

The intersection of legal digital currency and virtual currency is a legally stable currency ;

The intersection of legal digital currency and business circle currency/point is the delivery voucher/stored value card .

It is worth noting that the intersection of the three is where Libra is. Bai Shuo stressed that as a business circle, Libra has a huge traffic business circle and has a very large circulation potential; Libra may be recognized by certain countries or certain business alliances, which is a matter of opinion; at the same time, it is also a virtual currency. Libra is at the most central position and is a strategic high ground for competition.

Bai Shuo concluded that Libra has five major demands .

First, there is no borders, anti-money laundering and coin-making rights without borders , and it will inevitably encounter the game between central banks and monetary supervisory authorities. The results of the game are still not easy to say, and cannot be said to be the result of unification;

Second, peer-to-peer , for countries outside China, mobile payment still has a long way to go, and the infrastructure is far from sufficient. Peer-to-peer mobile payments and cross-border infrastructure are attractive to these countries;

Third, it is programmable . If Libra's infrastructure is built and it is based on a 2.7 billion customer base to embed third-party business logic and open finance, this is a scary thing;

The fourth is the zero handling fee , the impact on the existing exchange system and order;

The fifth is low volatility , which means that it is used for flowers, not for speculation, and it allows everyone to use Libra in the circulation. Based on the above five appeals, he separately proposed the impact of Libra on China's development of financial technology .

Without borders : "Who is No?", some countries may refuse, and some countries may accept conditions because they have to implement real-name systems to solve problems such as anti-money laundering. China will certainly not accept it unconditionally, and it must follow the supervision;

Peer-to-peer : China's mobile payments have done a good job, but countries outside China need to fill in this lesson. "How do you make up this class? Do we have a voice?" This is a very important issue. If Libra gains momentum in the future, it will definitely impact Alibaba and Tencent's international business;

Programmable : Libra or cornering overtaking, facing such a large user base, implementing Libra-based complex business logic, and opening interfaces, this is a big deal;

Zero commission : Libra will achieve low cost bypass and replacement of the existing international exchange order;

Low volatility : Libra uses an algorithm to mark the market, backed by a basket of real asset reserves.

People have joys and sorrows, and the moon is full of gloom. Even Libra is not perfect. Bai Shuo believes that Libra has four difficulties to overcome , as shown above.

The first is the conversion rate of 2.7 billion Facebook users to Libra . This is a very practical problem, because 80% of the countries where Facebook users are located, their central banks are relatively strong, Libra's landing will definitely play with the central bank. Therefore, whether Libra's conversion rate can achieve its nominal effect is questionable;

Second, the central banks of all countries have taken precautions against “no borders”. Central banks have both concerns about the loss of the coinage rights and panic about anti-money laundering;

The third is the difficulty of technically “licensing” to “non-permitted” . The white paper says that in the future, it will turn to “non-permitted”, users can dynamically join or launch, this technology is very difficult to implement, we will wait and see;

The fourth is the Chinese factor . Only China has the ability to make something similar to Libra. China is the only capable responder in the world. Bai Shuo said that blockchain technology can exert great potential in cross-border payment, international exchange and open finance. Although China has a first-mover advantage in mobile payment, it still has the real risk of being rushed by Libra. He gave three solutions , as shown below.

The first is to abandon the construction of overseas infrastructure, build overseas business on the infrastructure of others, and make mobile payments to others. This is equivalent to surrendering to Libra;

The second is to retreat to the country and not to contact Libra , which is equivalent to retreat;

The third is to establish an autonomous system that can compete with Libra . I personally prefer the third one. As for the final policy of landing, it remains to be seen.

At the end of the speech, Bai Shuo proposed four ways to deal with it .

1. Encourage extraterritorial operations , do not put us in the country, be sure to fight out, and have the corresponding situation and formation;

2. Explore docking and standardization , a series of business through standardization docking, we can do it ourselves, it can do, we must be able to dock;

3. To be a big domestic ecosystem , this is also the foundation of everything.

4. Governance and synchronization follow-up . In addition to central bank appeals, anti-money laundering, and foreign exchange control, we also have other issues of concern to all parties, such as privacy issues, operational security issues, and operationality. For example, the issue of personal data rights protection.

(The content of the speech is only the speaker's personal opinion, does not represent any institutional position)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!