From "global common currency" to "stable currency", Libra still compromises with regulation after all

Recently, Libra has changed its name and changed its name to "Diem" and returned to the public's field of vision. This change of name may also mean that Libra has broken free from the troubles it encountered in 2019, but it also means that Libra has given up a lot before becoming a global currency. "Diem" now.

It is still more customary to call "Diem" Libra. After all, the emergence of Libra brought huge controversy. For pure blockchain and digital currency enthusiasts, Libra is undoubtedly exciting, but as an ordinary For the nationals, Libra is full of threats.

On June 18, 2019, Facebook released the Libra white paper.

At that time, Libra’s original intention was to conquer the global currency, and it positioned itself as a blockchain cryptocurrency, 100% linked to a package of bank deposits and short-term national debt, with stability, low inflation, global acceptance and The exchangeable advantage, while linked to a basket of currencies, includes 50% of the US dollar, 18% of the euro, 14% of the Japanese yen, 11% of the British pound and 7% of the Singapore dollar.

Just imagine, Libra’s actual controller, Facebook, has nearly 3 billion users all over the world, which is Libra’s natural distribution channel. In addition, Facebook has also attracted the world’s most famous Internet and payment companies, including MasterCard, Paypal, visa and eBAY Well-known companies such as Libra are regular payment customers in major shopping malls and consumer places around the world. Once successful, Libra will quickly become a global currency.

It is precisely Libra that is so against the sky that it has attracted opposition from central banks around the world, among which the US government is the most opposed. Libra's leaders, including Zuckerberg, also ushered in the "US hearing" in October 2019. The final conclusion of the "trial" is rectification and rectification, and rectification until it can pass the supervision.

Since then, Libra's "vision" has begun to decline. Payment giants such as Visa, MasterCard, and eBay have withdrawn one after another. The Libra Council, which originally had strict audit standards and implemented in every court, has gradually become empty. The previously estimated 100 member positions are now Only 24 members.

Later things were compromising for supervision. The basket of currencies was changed from the currencies of the five major countries to only anchored to the U.S. dollar, and the name was changed to Diem, emphasizing the independence of the project and weakening the connection between Diem and Facebook. Regulatory pressure ensued for an early and smooth launch of Diem.

After the initial partners gradually left the team, regulators around the world jointly suppressed, revised and released the white paper 2.0, and changed its name... After struggling for more than a year, the high-spirited and idealistic Libra is now facing everyone with Diem, which is closer to reality.

Although Diem's ​​threat to the monetary sovereignty of countries around the world is weakening, its threat to the stable currency pattern in the currency circle is still so strong.

The current stablecoins mainly consist of USDT ($19.5 billion), USDC ($3 billion), DAI ($1.1 billion) and TUSD ($300 million). Besides Facebook, there are giants such as Temasek and Shopify behind Diem. Definitely not a problem for Diem.

What's more, Usdt, the stablecoin with the largest market value at present, has always been controversial. In particular, it has all the rights to issue or destroy Usdt. In the absence of supervision, there have been many problems such as opaque U.S. dollar reserves and random issuance.

Diem adopts the "consortium chain + centralization" architecture. All transactions are initiated by the central authorized node, which generates a permanent record containing transaction time, place and method information, so it can support regulatory authorities to fight against money laundering, tax avoidance and other violations. At the same time, the issuing entities can restrict each other to provide internal supervision for the issuance and circulation of digital currency.

In contrast, it is more in line with current regulations. Recently, the United States is formulating a stablecoin bill at the regulatory level, making the current stablecoin situation "unstable", and the current launch of Diem may be an opportunity, an opportunity to reshuffle stablecoins.

Going back to the market, the intraday market as a whole has not seen major changes. Although there is a pullback after the opening, the subsequent rebound is also good, and for the new opening this week, it is more beneficial to step back first. The upward trend of the future is tentative.

Due to the uncertainty of recent market fluctuations, the trend patterns are also relatively diverse. If the time frame is extended to the high point of 19888 and then bottomed out at $18,000, it will be a contracting triangle (the yellow dotted line in the figure). After the outbreak this morning , successfully broke through the triangular interval, and after stepping back to confirm, it broke through again and has an upward trend.

If it is narrowed to the trend after the bottom of 18500 last Friday, it has been an upward channel so far (the red part in the figure), which seems to be a volatile upward trend, but the upward speed has slowed down compared with the previous "rampage" .

The current market is most concerned about $20,000. For some short sellers, compared with the current situation of not falling, it is more likely to see stagflation. Therefore, the short-selling chips in the past two days have gradually increased. This may be a breakthrough for bulls After all, compared with 20,000 or not 20,000, the dealer is more concerned about blowing out more chips, and once the short chips increase, the stronger the dealer's willingness to pull the market, the market should happen in the next few days Changes, pay attention to be cautious.

Mainstream currencies: In the past two days, some currencies have been relatively strong, such as BSV and XRP, but they will always fall back later, indicating that the overall explosiveness of the market is still relatively average, but it is the result of the suppression of the market. ETH The more "orthodox" mainstream currency like LTC has been quite satisfactory in the past two days, and the followers are not strong, which shows that they are all waiting for the signal of the big pie.