Cai Weide: Step up the development of legal and compliant digital currencies and digital stocks
Original: Cai WeideBlockchain Industry Committee
Introduction: Facebook's stablecoin Libra will have a profound impact on international trade payments and monetary and financial systems. A new currency competition has begun, but Libra's reserve assets will most likely exclude RMB, and the participation of Chinese companies may also be extremely limited. So, how does China participate in this new currency competition? How to solve regulatory issues such as capital outflows, money laundering, and illegal financing?
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Cai Weide
Chairman of China-Asia Economic Development Association Blockchain Industry Committee; Distinguished Expert of the National "Thousand Talents Program"; Doctoral Supervisor of Beihang University; Bachelor of MIT; Doctor of Computer Science at the University of California, Berkeley; 30 years; Scientific Advisor of the Blockchain Research Center of University College London; Chief Scientist of Tiande Technology; Director of Blockchain Internet Laboratory of National Big Data (Guizhou) Comprehensive Experimental Area; Honorary President of CCID (Qingdao) Blockchain Research Institute ; Director of the Blockchain Special Committee of Beijing Internet Finance Industry Association.
The following is President Cai's statement:
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1. Digital fiat currency and blockchain are the bane of illegal activities
Some people may be a bit misunderstood, because many people put money laundering and illegal financing together with blockchain. In fact, money laundering and illegal financing should be put together with digital tokens (an application of blockchain), not connected to the blockchain.
Blockchain is a regulatory weapon. In addition, the evasion of digital tokens from the regulatory mechanism is not a function given by the blockchain, but a function given by the P2P network, which has nothing to do with the blockchain. This is a very big misunderstanding.
"Blockchain + P2P network" has become a tool to evade supervision. If only blockchain technology is used, it will become a regulatory tool. P2P network technology is designed by the United States to evade supervision, not blockchain technology, and has nothing to do with blockchain. Bitcoin is a P2P network technology used to evade regulation.
In 2016, the blockchain report of the well-known chief scientist in the UK also held the same view. In the report, it has been mentioned that the blockchain is a regulatory tool, and it has been mentioned more than 20 times that the blockchain is a regulatory tool that can reduce fraud incidents and can be used in many government departments, such as taxation and poverty alleviation. For digital tokens, the chief scientist of the United Kingdom has strongly criticized it. Its report theory mentioned at the beginning that the blockchain must be distributed from the digital tokens, and the two cannot be compared.
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2. Digital legal currency (stable currency) is the most strictly regulated currency
Legal currency can appear in three ways, one is banknotes, the other is electronic money (now bank accounts), and the third is digital currency. Which of these three currencies is the easiest to launder? Which is the easiest to monitor? Do you know?
Cash is the best for money laundering and the most difficult to supervise, followed by electronic currency, and finally digital legal currency. Why is digital legal currency the most difficult to launder money?
The blockchain we are talking about today is not an illegal and unregulated digital token, but a regulated digital legal currency. All transaction processes are recorded and encrypted and decrypted. The signature can know whose money is running when Wherever you go, every transaction is recorded on the blockchain. So this is a very strong regulation! It is very difficult to launder money or do illegal things on this.
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3. China should develop and research legal and compliant digital currencies and digital stocks
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4. To join the Libra organization, it is recommended to add RMB
In addition, Libra itself still has a considerable degree of freedom, because it is still a commercial behavior, not a government behavior. Chinese companies or units can join the Libra organization, and these organizations can suggest putting RMB in it. In this way, Libra can accept RMB, and open private, commercial banks, and technology companies to issue stable coins overseas. In this case, it can also promote the international status of RMB.
"Blockchain Industry Professional Committee"
The initiation report was submitted on November 22, 2018, and the establishment was approved by the China-Asia Economic Development Association on December 14, 2018. It was formerly known as the "Small and Medium-sized Enterprise Promotion Association", which was established under the supervision of the Ministry of Foreign Affairs and approved by the China-Asia Economic Development Association. The committee actively carries out exchanges and cooperation with the blockchain industry of various countries in the world, and serves my country's small and medium-sized enterprises and social economy through the formulation of industry standards, investment promotion, industrial integration, economic and trade exchanges, information consultation, rights protection, and corporate social responsibility. , to make due contributions to the country's "Belt and Road" initiative.
