Cai Weide: Look at the competition of stable currency from a strategic perspective
Recently, Cai Weide, the chairman of the Blockchain Industry Professional Committee, was invited to participate in the [Hunting Theme Event] to answer the recent hot spots in the blockchain industry. Related articles will be published in the near future, so stay tuned!
Recently, Cai Weide, the chairman of the Blockchain Industry Professional Committee, was invited to participate in the [Hunting Theme Event] to answer the recent hot spots in the blockchain industry. Related articles will be published in the near future, so stay tuned!
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Point of view refinement:
Point of view refinement:
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The following is President Cai's statement:
1. Sovereign digital legal currency
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2. The Great Bank of England makes the problem more complicated
Let us not forget that the Bank of England adopts the "big central bank doctrine", which is to move part of the business of commercial banks to the central bank, which greatly expands the demand and complexity of the central bank system, which will make the issuance of digital legal currency much slower. So at the beginning of 2018, the Bank of England announced that it would abandon its digital legal currency, just for research. But during this time, the British continued to propose their various models and projects. However, in July 2018, a new approach emerged, created by the American IBM Corporation. We know that IBM is neither a central bank nor a commercial bank at all, but it has issued a digital stable currency, and this currency is guaranteed by the FDIC of the US government. Therefore, the stable currency issued by it is linked to the legal currency at once, and it is guaranteed by the government, which essentially becomes a digital legal currency.
In August 2018, a digital fiat currency researcher at IBM, and in fact a former executive of the central bank of Singapore, said that the IBM stablecoin is a digital fiat currency in all aspects.
3. New digital fiat currency route
Suddenly, the digital fiat currency was changed from the central bank to the private issue, and the U.S. government also recognized it. This became the world's first digital fiat currency model. However, let’s take a look at this digital legal currency model, which is quite different from the digital legal currency that the Bank of England said in 2015 and 2016. Because it was originally issued by the central bank, this time it is issued by the private sector, but with the guarantee of the government, it is essentially legal currency. The digital dollar issued by IBM, or the digital dollar issued by the central bank, is essentially equivalent to paper money. This creates a completely new digital legal currency model. This digital legal currency model is that we don’t need so many businesses from the central bank. We only do payments or cross-border payments, and we don’t need to deal with other functions. Such a digital fiat currency system is much smaller than the central bank's digital fiat currency system, and it is used within a certain range. It can be regarded as an experimental system, and such a system can also be connected with the existing central bank system, because the existing central bank Both systems accept payment systems. Therefore, such a digital fiat currency system can be connected to the existing central bank system as long as the payment gateway is opened.
This establishes a completely new digital fiat currency system. At the beginning, the digital legal currency made by the UK was made by the central bank itself. The large system was very complicated, and everyone would have a headache when they thought about it. However, in July 2018, IBM said that we would make a small system, and we would grow slowly after we made it. The structure of the digital fiat currency system is different from that of the traditional central bank system. If we want to put the blockchain system in the current central bank system from the beginning, it will become completely different and very troublesome. IBM's approach is a very smart digital currency strategy. It may take 40 to 50 years for each central bank to establish the current central bank system. It is really a headache to change it. In software engineering, such a system is not worth changing. If it is to be changed, it must be re-established. So IBM's idea is to take a shortcut and a more practical route. This route was followed by JPMorgan Chase in February 2019, and also issued stable coins. When JPMorgan Chase came out to speak, it also shocked the World Bank and the World Central Bank, because JPMorgan Chase is a very important bank in the world, and his issuance of currency means that the world's first bank to issue currency, so this incident caused a sensation in the global financial circle. and many central banks.
Later, Facebook immediately announced the issuance of stable coins. When it was announced, it seemed that only the investment community was a sensation. The financial circles and the central bank did not discuss it. ), these are small digital fiat currencies; later we also know that Visa has also begun to issue digital fiat currencies. The work of digital legal currency was originally proposed by the Bank of England in 2015 and 2016, but it was abandoned because things were too complicated. In 2018, it changed its path, instead of doing it in the existing central bank system, but re-doing it outside, so it opened up a new world and a new route, and this has become a very important thing.
4. Financial "Battlefield"
The author has mentioned many times in the past that the emergence of such a stable currency or digital fiat currency is a battleground and a very important matter, and the urgency of this matter is described by "10 aircraft carriers to the outer beaches". At the beginning of June, I wrote "Five Tigers" to describe the explosiveness of this matter. In fact, this event is a historic event in 325 years, why do you say that? The Bank of England was established in 1694 and began to issue pounds. When I was in a meeting with the Bank of England in 2016, the Bank of England said a sentence: The Bank of England has never changed for more than 300 years. The pound is still the pound. As a result, suddenly digital pounds are now being issued. He said that if the digital pound comes out, the entire infrastructure, the country's monetary policy, and the market will all change. So when the Bank of England announced this matter, it caused shock among researchers, scientists, and executives of many central banks around the world. This is why the author began to talk about the importance of this matter in 2016. It was not until the Facebook white paper appeared on June 18 this year that the world's central banks seemed to be really shaken, and the brains of the entire world's financial institutions were reset. Wash, and then I will talk about how powerful the whole rewash is.
5. Mr. Ren's suggestion
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6. The "Boss with Little Brother" model
At the national level, for example, if the central bank wants to issue digital legal currency, this is the first army; while technology companies, such as Facebook or commercial banks such as JPMorgan Chase, issue digital legal currency, we are called the second army. The first army and the second army are all digital legal currency. The digital legal currency is issued by the central bank is the boss, and the digital legal currency is issued by these technology companies or commercial banks. The younger brother, the boss leads the younger brother. Today, it is inappropriate to use one army against two armies. During the Warring States Period, Sun Bin had a strategy of one army and two armies when racing horses, so a wise strategy should be used when racing.
7. There is no need for the first army to compete with the second army
Therefore, the author suggests not to use the first army to compete with the second army. This is inappropriate and unequal, because the first foreign army has not yet come out. What is national power? In the United States, many things are actually not done in the name of the country, but in the name of the people. Not only the United States, many countries do this, and they all do national affairs in their private capacity. Today Facebook’s Libra is actually supported by the US government. For example, the US government’s FDIC is the federal deposit insurance. When Libra announced the white paper, the FDIC proposed to supervise, which clearly shows that they support Facebook’s Libra plan. Looking at the U.S. central bank, the Federal Reserve, he said that he does not have full regulatory power, but has partial regulatory power, which obviously means that the Fed is willing to supervise the Facebook project, so it is very obvious that the Fed thinks this is a good project and should support it. In addition, before the hearing was held, the President of the United States tweeted that Facebook had to apply for a banking license if it wanted to run a bank, which clearly supported Facebook. So we see that the US government, the Federal Reserve, and the US President all support Facebook. Well, this incident seems to be a major event in which the U.S. government supports the non-governmental approach behind the scenes. This is a historic event, because this incident has shocked the presidents, central banks, commercial banks, and businesses of many countries, so this incident should be possible. It should be the most important thing in 2019 so far.
8. The Second Army is also a government-backed project
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.
"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.
