Does the US ban large technology companies from issuing coins? China "can't sit still"

Whether active or passive, traditional financial institutions and technology giants are entering the digital currency field. In particular, the emergence of Facebook Libra once again subverted people's imagination of the world's monetary and financial system, digital currency has become an inevitable development trend in the future, and this trend is getting worse.

On the new world track, China is gaining momentum.

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In response to multiple concerns about privacy, money laundering, and financial stability caused by Libra, the US Congress will hold a hearing to ask questions. Before the upcoming Libra hearing, the Democratic lawmakers of the US House of Representatives Financial Services Committee proposed a draft called the Keep Big Tech Out of Finance Act to stop Large technology companies have the functions of financial institutions or issue digital currencies.

According to the draft proposal, large-scale platform utilities must not create, maintain, or operate digital assets, that is, digital assets that are intended to be widely used as a transaction medium, billing unit, value store, or any other similar function as defined by the Federal Reserve System Board. Among them, any technology company with annual revenue of more than 25 billion US dollars, mainly engaged in providing online public markets, exchanges or platform third-party connection platforms will be subject to the ban. If you violate any of the bills, you will face a daily fine of $1 million.

For the traditional giants who are eager to try, the proposal undoubtedly conveys a strong warning. However, this proposal does not necessarily have enough votes to pass, even if it is passed by the House of Representatives, the proposal still needs to be approved by the Senate.

However, the United States does have doubts about the global digital currency. In the previous report on the blockchain, US President Trump once commented that if Facebook and other companies want to become a bank, they must seek a new banking license and, like other banks, comply with the domestic And all banking regulations in the world.

Catch up with the trend?

"In the future, Libra will not know if it succeeds. It may be replaced by better ideas or more stringent, more stable and more efficient electronic money. But from the trend of recent years, many organizations are trying to establish a A more global currency, there will be problems with strong coins eroding weak currency, which is a challenge for the RMB and foreign exchange management. At the same time, the strength of the currency is also directly related to the problem of capital flows. The current strong currency is the US dollar. It is said that strong coins erode weak currency is the dollar eroding other currencies. In the future, retail shopping and asset trading can directly use the US dollar, which will also lead to capital flows. Capital flows not only depend on investment opportunities, spreads, but also because of the sense of security. The situation of weak currency countries flowing to strong currency countries, especially when there are crises and fluctuations. In the past many years, the global dollarization process has been the erosion of the US dollar against weak currency countries.” Recently, the People’s Bank of China Ogawa pointed out.

At the same time, he also said that after the global financial crisis in 2008, one of the most important reasons why China can continue to narrow the gap with the United States is that the financial system is relatively sound. However, the economic and financial crisis is still inevitable. Only when China conducts forward-looking research ahead of schedule and prepares ahead of time can it be less vulnerable and less problematic when the economic crisis occurs, so that the renminbi is in a favorable position in the future internationalization and global competition. . Therefore, China's research on the globalization of digital currency and currency should be early.

A stone that stirred up a thousand waves, Libra, born with a gold spoon, sparked global thinking about the globalization of digital currencies, and accelerated the development of digital currencies by central banks. In fact, in a sense, Libra's launch opened a Pandora's box, making digital currency an irreversible element in today's world, and allowing countries to start a positive response, as is China.

According to Zhou Xiaochuan's suggestion, China can learn from the Hong Kong “currency bureau” Hong Kong dollar issuance system, which is issued by commercial organizations and requires 100% guarantee for the issuer of digital currency.

It is worth mentioning that not long ago, Wang Xin, the director of the Central Bank Research Bureau, also revealed that “if Chinese institutions have very good foundations and conditions, they can also issue Libra-based Chinese digital currency.”

So, what is the attitude of Chinese business giants in the face of unavoidable innovation? Take Ma Huateng, the founder of Tencent, as an example. When Libra plans to launch, Ma Huateng commented that the technology is mature and not difficult. It depends on whether regulation is allowed. The implication is that we can understand that Tencent can also launch a digital currency similar to Libra, subject to regulatory approval.

From the recent signals released by the central bank, an opportunity for Chinese Internet companies such as Tencent and Alibaba to overtake the corner of the digital currency world will come.

In short, whether you believe it or not, digital money is infiltrating into our lives, transforming the world, and perhaps in the future, we will see a more free, more inclusive, globalized digital currency era. (zero-identification blockchain)

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