What impact will the launch of Libra have?
According to the latest news, the digital currency Libra plan initiated by Facebook will be launched as early as January next year. But initially only a single currency anchored to the U.S. dollar will be issued, and Libra anchored to other currencies will be launched later.
We can see that in the case of Libra’s continuous postponement, the pattern of the digital currency world has undergone major changes. Stablecoins such as USDT, USDC, DAI, and BUSD in the market have begun to occupy the market and become the main digital currency. application.
At this time, what kind of changes will the news of Libra or its upcoming launch bring to the market?
First of all, let's take a look at the concept of Libra. Libra is a cryptocurrency project led by social media Facebook. It is a synthetic currency unit based on a basket of currencies. The currency basket is mainly composed of the US dollar, the euro, the British pound, the Singapore dollar and the Japanese yen. 50% for the US dollar, 18% for the euro, 14% for the Japanese yen, 11% for the British pound, and 7% for the Singapore dollar. The US dollar dominates half.
The five currencies described here, except for the RMB and the franc, are actually the main currency types in international circulation, and the pilot work of the digital RMB is also going on, which is very interesting. Could it be that the Libra Alliance wants to cooperate with the Will other non-Libra members split and become independent?
In fact, a lot of information can be seen from the participating members of the early Libra Alliance. The early participating giants were mainly American companies such as PayPal, Visa, Uber, Spotify, and Coinbase. can be launched normally.
But Libra itself is a kind of alliance chain, which provides another solution for the existing digital currency, connecting multiple currency types in series and restraining each other.
We can see how Libra affects the world through some major events since its development.
On June 18, 2019, Facebook released the Libra white paper. The purpose is to use the field of digital currency as a breakthrough point to seek new profit growth points, follow the example of Tencent in China, and break through from the payment field based on social networking.
In the U.S., online payment tools are still financial giants such as Visa, Master, and PayPal. It is not like in China that the three giants of WeChat, Alipay, and Cloud QuickPass have formed parallel scenes, and both of these three payment tools are in addition to payment. In addition to other fields, there has been good development, and the other one was also launched by the central bank, which led to Facebook's decision not to enter the payment track.
On July 2, 2019, Democratic members of the U.S. House of Representatives issued an open letter to Facebook, calling on it to suspend all Libra development. Moreover, the hearing was held on July 16, 14 days later, and so far, Libra has come to a standstill. During the period, Libra was repeatedly called to attend hearings to discuss compliance issues.
At the end of 2019, Libra finally ushered in a fatal blow-Uli Maurer, the Swiss Minister of Finance and outgoing president, said, "Facebook's Libra project is a failure in its current form and needs to be revised before it can be approved. "
In addition, due to the outbreak of the epidemic this year, some Libra members began to withdraw, and the main creative team also began to replace. Libra also began to change the white paper and change its thinking. New ecological construction.
After March this year, the blockchain encountered the "3.12" black swan event, and began to usher in the popularity of DeFi in June, and Libra withdrew from people's vision.
The relaunch of Libra this time may be related to Biden's inauguration as the President of the United States. Its launch may be a great benefit for legal tender.
However, it cannot be ignored that for China, if Libra is adopted on a large scale and does not support digital renminbi, it will form a situation where the Libra alliance chain will confront the digital renminbi. This is also the part that the introduction of liberal is not good for the country, especially when the country and the United States are at the peak of the economic war.
Therefore, we should pay more attention to how to ensure the steady growth of the domestic economy and how the digital renminbi will go to the world. Maybe this is also the original intention of the digital renminbi.
