Big hair coin, the central bank panicked, bitcoin or become the biggest winner!

Facebook's issue of currency first sparked in the currency circle. With the spread of discussion, the central banks of all countries in the world are not calm. The attitude towards Libra is one-sided. It is not a high-level supervision flag or a big talk about illegal parking.

Before Libra appeared, countries did not seem to really put cryptocurrencies such as Bitcoin in their eyes. Although the G20 summit will discuss cryptocurrencies every year, there are no constructive development proposals or regulatory measures every time, because everyone thinks "Encrypted assets currently do not pose a threat to the stability of the global financial system."

Bitcoin has not yet reached the point of "threat". After all, the market value of the entire cryptocurrency is more than 300 billion, only one-third of the market value of Amazon and Apple, one-sixteenth of the market value of gold, and two percent of the market value of the global stock market. One is not……. Compared with the global capital market, cryptocurrency is only a drop in the ocean. In recent years, it has been unable to shake the existing financial system. Central banks of course can discuss regulatory issues without pain.

Today, Facebook, with its 2.7 billion global users, has become the fulcrum to incite traditional financial sentiment. It can be seen that the “barbarians” of Libra have violated the interests of the regular army.

Central banks are panicking

On July 9, former central bank governor Zhou Xiaochuan talked about Libra at the seminar. He said: "Libra is not only a shock to traditional business and payment systems, but its attempt to peg a basket of currencies represents a possible future. A trend of global currency."

Compared with niche, high-volatility Bitcoin, Libra , which has a wide coverage and stability, allows major central banks to see the possibility of future currency formations, while the new system represented by Libra will redistribute market benefits and split the original The two major cakes of the currency distribution rights and taxes of various governments.

Realizing that the interests are about to be invaded, central banks are unable to sit still. They use the regulatory shells to hold Libra, an uninvited guest, while quickly focusing on the research and development of the central bank digital currency (CBDC) to prepare for the future battle of digital currency.

Not long ago, the International Monetary Fund released a report saying that several central banks in different countries are considering implementing some form of central bank digital currency (CBDC). Among them, Uruguay has launched the CBDC pilot project, while the Bahamas, the Eastern Caribbean Monetary Union, Sweden and Ukraine are also “immediately” testing their respective systems.

With the birth of Libra, the issuance of central bank digital currency by countries is a foregone conclusion.

Facebook forced traditional financial reform

During Zhou Xiaochuan's hedging of the central bank, he has also been pushing the central bank's digital currency research and development. This time he even suggested directly: "We need to plan ahead and prepare for the renminbi to be in a favorable position in the future internationalization and global competition. ”

Before the global trend, no one wants to be the one who is left behind, and China is no exception.

On July 8, Wang Xin, director of the Research Bureau of the Central Bank, said: "The State Council has officially approved the research and development of the central bank's digital currency. At present, the central bank is organizing market institutions to engage in corresponding work." As soon as this was said, the world's major media began to rumor "China. I want to issue my own digital currency."

It can be said that this is the first time we have heard the official voice so clear, but it was only a rumor before, and we can't know if we have promoted R&D. From now on to the point of clarity, it is largely due to Libra's push.

Libra has a large number of application scenarios and a wide support group. If the market reflects well, Libra may gradually evolve from a payment instrument into a currency that can compete with the French currency , which is the most reluctant to see by central banks. The situation.

Facebook is bound to be subject to US regulatory control in the US territory. Although Libra may not be able to get out of regulation, it is the trigger for countries to seize the high point of digital currency.

After all, "behind the currency is interest, power, international politics, diplomacy." No one wants the dollar to weaken the currency of each country.

Now that the trend has come, whoever can seize the first-mover advantage will have more currency voices. I believe that more and more countries will hope to overtake the curve and join the ranks of the national digital currency.

Bitcoin becomes the biggest winner

As a big fan of Bitcoin, I am very happy to see the situation of "national currency".

First of all, we must be clear that no matter which central bank's digital currency, whether it is Facebook currency or JP Morgan currency, they do not have decentralized features.

The main function of these digital currencies is the payment function in the trading system, and your currency holding situation and trading situation must be under the supervision of each country. In addition to being more convenient and efficient, the shortcomings of the legal currency are the same as the legal digital currency.

Blockchain can only be an auxiliary technology in this, and no country will let the blockchain steal the dominant position of the currency. Unlike Bitcoin, it is still a decentralized, constant, validated digital currency whose status cannot be replaced by any "manipulable stable currency."

With Facebook's currency and central banks building digital currencies, it is bound to be more and more people aware of the changes of the times, and begin to understand and accept the concept of digital currency. Bitcoin, the originator of digital currency, will naturally To gain more attention, we expect such a scene to arrive as soon as possible.

Bitcoin was born in the traditional financial crisis. Ten years later, it finally triggered self-examination and self-innovation in the monetary system of various countries. Bitcoin is a mirror of the demon, and the stage of the digital currency is familiar and familiar, and the audience can see it at a glance.

Text: Block wave Mazarka

Source: Block wave

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

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Cardano's on-chain data indicates a potential surge in value. Could $10 be within reach?

Exciting bullish indicators emerging within the Cardano network indicate potential for a future surge in the value of...

Blockchain

Cardano's ADA price is dropping towards $0.52. Is it time to buy the dip?

The value of Cardano (ADA) may decrease below $0.52 according to short-term forecasts, however long-term optimists re...

Market

Bitcoin, Ethereum, Solana, Binance Coin, XRP, Cardano, Avalanche, Dogecoin, Chainlink, Polkadot price analysis for 2/16

Bitcoin's strong upward momentum may encounter resistance around $52,000, but any potential decrease is expected to b...

Market

Analysis and Commentary: The Fate of Bitcoin ETFs and Cryptocurrency Performance

After a period of significant growth in the crypto market, traders were briefly shaken by a report causing a halt in ...

News

Interpreting the Performance of 14 L1 Public Chains in Q1: Stacks Emerges as Dark Horse, Network Usage Rate Generally Decreases

After the running-in period, various public chains have entered the "internal competition" stage.

Blockchain

Cardano Price Analysis: Expert Predicts a Strong Bull Run

According to respected crypto analyst Ali Martinez, Cardano (ADA) is expected to see a strong long-term price growth,...