In the turbulent encrypted digital currency market, all the masters are trying their best to seize market share and compete for their position in the encrypted digital currency market. Of course, the most noteworthy thing is still the cryptocurrency Libra that Facebook, which has a large global traffic, will launch.
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Libra's initial cheers
On June 18, 2019, Facebook officially released a white paper on the cryptocurrency Libra to the outside world! And Facebook officially set up a special department called "Calibra" to develop an e-wallet app for this cryptocurrency.
The Libra white paper has been released, and the first sentence of the white paper is: "Libra's mission is to build a simple, borderless currency and financial infrastructure that serves billions of people." Facebook said they plan to create a new decentralized blockchain, a low-volatility cryptocurrency and a smart contract platform, with a view to opening up new opportunities for responsible financial service innovation.
This operation of Facebook caused a global uproar for a while. You must know that after the blockchain and encrypted digital currency fire, it has always been some small companies and small projects involved, and most of them are air scammers. Of course, due to the particularity of encrypted digital currency, it is understandable that some large companies do not easily enter the market with large traffic, but Facebook’s announcement to join the encrypted market this time is really surprising. This time Zuckerberg brought more than 5,000 The news that billions of dollars and billions of users have joined the blockchain battlefield will naturally bring a carnival to people in the currency circle once it comes out.
Everyone seems to see that the encryption market is about to shine, as if Facebook will surpass all commercial institutions in human history, and even the status of the country, and become the "world central bank".
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Libra suffers from regulation and doubts
Trump questioned Libra in three consecutive tweets on Twitter. He believes that the Libra project is difficult to gain a foothold and has little reliability. If Facebook and other companies want to become banks, they must obtain new banking licenses and be subject to restrictions. bound by banking regulations. Federal Reserve Chairman Rom Powe also believes that Libra has raised concerns from the outside world, including privacy, money laundering, consumer protection, and financial stability.
More than that, similar concerns have spread to global regulators other than the United States. On July 3, the Financial Services Committee of the U.S. House of Representatives sent a letter to Facebook executives, requesting an immediate cessation of all work on Libra, stating that Libra would fuel a new Swiss-centered global financial system and challenge U.S. monetary policy and the status of the U.S. dollar.
At 10 am on July 16, US time, the first Senate hearing on Facebook Libra was officially held. David Marcus, head of the Libra project, represented Facebook at the controversial hearing. Since Marcus did not give positive answers to many questions that day, the doubts intensified, which directly led to a 10% drop in Bitcoin that day.
The second duel of the Libra U.S. hearing, a 5-hour wheel battle, from the evening of July 17th to the early morning of the 18th, Beijing time, the U.S. House of Representatives held the second Libra hearing, and David Marcus, head of the Facebook Calibra team, appeared again Hearing and questioning. Although Marcus gave a perfect answer, Libra still has not been recognized by the world, and the two hearings did not give Libra a positive conclusion for the public and the world.
Subsequently, various countries have also given corresponding policies and regulatory strategies for the issuance of Libra, and some countries have also pre-emptively accelerated the issuance of their own cryptocurrencies to resist the impact and impact that Libra may bring in the future (for example, the People's Bank of China will issue its own digital currency soon).
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Libra Faces Regulations and Accelerates Release Date
Under the doubts of all parties and regulatory pressure, Libra has made a lot of concessions than before, and has put a thick layer of sheepskin on its "wolf ambition".
According to the Financial Times, on September 16, representatives of Facebook’s encryption project Libra met with officials from 26 central banks, including the Federal Reserve and the Bank of England, in Basel.
This will be the first major meeting between Libra and policymakers since its creation. Libra was invited to participate in the September 16th meeting of the Bank for International Settlements Committee on Payments and Market Infrastructures. Libra has been asked to answer key questions about the scope and design of the currency, with the results to be reported to G7 finance ministers in October, an official said. In addition, the antitrust authority of the European Commission has sent a questionnaire to the public to investigate whether Libra will cause unfair competition to competitors.
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Libra is hit by regulation again, and there is a possibility of delaying the release
The release of Libra may be delayed due to regulatory concerns around the world, Bertrand Perez, executive director and chief operating officer of the Libra Association, told Reuters.
Especially France and Germany, the two countries have successively stated that they will prevent Libra from doing business in Europe. Bertrand Perez said the association was continuing discussions with regulators in Europe and elsewhere to allay concerns.
In an interview at the United Nations Office in Geneva, Perez talked about (Libra's) planned launch date of June 2020, saying: "When we announced the project in June, that was our goal. But it was delayed by one or two months. Quarters are also acceptable. Importantly, we need to comply with regulators, and we need to make sure they are in the same boat as us and fully accept our solution. We need to make sure they work with us and are fully committed to our solution Satisfied. We know we have to answer many questions from regulators on both sides of the Atlantic and the rest of the world."
From this point of view, regulation around the world is still the biggest obstacle to the release of Libra, and it is almost impossible for Libra to be released as scheduled. In the future, Libra may encounter more comprehensive regulation and the suppression of more countries. We can’t make any conclusions about the future of Libra. Maybe it will no longer be itself under the pressure of various countries, maybe it really is. Even if the possibility of becoming the "world central bank" of the future is slim, we also have expectations.
