Editor's Note: This article comes fromNakamoto Shallot (ID: xcongapp), Author: Sister Xiaocong, published by Odaily with authorization.

Editor's Note: This article comes from

Nakamoto Shallot (ID: xcongapp)

Nakamoto Shallot (ID: xcongapp)

, Author: Sister Xiaocong, published by Odaily with authorization.

Libra is still full of uncertainties. Previously anchored to a basket of currencies, it was once called the "world currency", and some people called it "the continuation of the hegemony of the US dollar." How the currency basket behind Libra will land is still unclear. The answer, but now Libra may undergo a new round of "basket currency" adjustments.

In mid-to-late September this year, Facebook officially disclosed that Libra, the stable currency it plans to launch, will accept the exchange of five currencies: the US dollar, the euro, the Japanese yen, the British pound and the Singapore dollar. The structure of the resulting reserve asset currency basket is: US dollar 50%, EUR 18%, JPY 14%, GBP 11%, SGD 7%.

But yesterday, Calibra CEO and head of the Libra project David Marcus (Marcus) told Reuters that Facebook's cryptocurrency plan, Libra, will likely create a variety of currencies based on a single currency (subdivided into dollar stablecoins, euro stablecoins and sterling stablecoins, etc.), rather than based on a basket of currencies as originally planned.

Marcus said the Libra Association's main goal remains to create a more efficient payment system, but it is open to finding alternatives to using Libra.

"We could do it differently/We could do it differently," Marcus said, "In addition to having a comprehensively anchored unit (Unit, or Libra), we It is also possible to have a series of stablecoins pegged to a single fiat currency, such as USD stablecoins, EUR stablecoins, GBP stablecoins, etc.”

In addition, Marcus also said: "We can achieve this goal by having a variety of different stablecoins. These stablecoins represent national currencies in the form of digital tokens. This is one of the options that should be considered."

Secondly, the Libra team is also considering "by owning a variety of different stable coins" to achieve their goals, which indicates that in addition to Libra anchoring a basket of currencies, Facebook's cryptocurrency project will also have a series of "derivatives" of Libra. Stablecoins, they are respectively anchored to different fiat currencies.

Since the release of the Libra white paper, it has been surviving in an environment of regulatory pressure. Hearings have continued, and regulatory voices have been chaotic. Recently, seven giant companies such as PayPal, Mastercard, Visa, and eBay have withdrawn from the Libra Association. When there are more and more doubts, Libra may be seeking change.

Moreover, the issue of the basket of currencies anchored by Libra has always been a controversial issue. For example, insiders and outsiders in China are more concerned about the lack of RMB in the Libra basket of currencies. currency. In addition, some relevant people are concerned about how to maintain the stability of the basket currency structure and exchange rate risks.

At the same time, under the pressure of supervision, in an environment where many interest groups are involved, how Libra should implement the basket currency behind it makes the problem more difficult.

secondary title

Libra, global currency or dollar hegemony? The Hidden Worry Under a Basket of Currencies

"Libra's mission is to build a simple, borderless currency and financial infrastructure that serves billions of people," Libra's white paper reads.

It can be seen that Libra's original intention is not to be a stable currency based on the US dollar, but to be designed as a currency that circulates across sovereign currencies. However, the evaluation of it in the market has always been divided around the issue of "dollar hegemony".

Long Baitao, a Ph.D. from Tsinghua University and a researcher in monetary finance, believes that the U.S. dollar, which has the highest weight in the Libra reserve pool, and the high possibility of using the U.S. dollar as its denomination unit, will fully maintain the U.S. dollar’s ​​monetary hegemony and extend it to digital world.

He believes that Libra fundamentally protects the interests of the traditional legal currency system, because it uses legal currency (and/or legal currency-denominated national debt) as a reserve pool, which is a "pseudo-innovation" based on the traditional legal currency system. The biggest vested interest behind Libra is the US dollar.

In addition, the Bank of England's statement on Libra can basically be understood as the Fed's "repeater", which has always emphasized "meeting the highest regulatory standards." However, Germany and Fado, the leader of the European Union, are opposed to Libra. The fundamental reason is that Libra represents the interests of the US dollar and erodes the monetary sovereignty of the euro zone.

Earlier, in Libra's currency basket, the U.S. dollar and the euro accounted for 50% and 18% respectively. Compared with the ratios of the U.S. dollar and the euro accounting for 40% and 30% respectively in the legal currency settlement, the U.S. dollar was strengthened, while the euro was significantly weakened.

At the same time, there are many views that Libra is impacting the dominance of the US dollar.

Maxine Waters, chairman of the Financial Services Committee, has publicly stated that Facebook appears to be seeking to build a new global financial system to counter the U.S. dollar.

Gu Yanxi, a senior researcher of blockchain/digital currency, also said that the original intention of Libra is not a stable currency based on the U.S. dollar...I think that the Libra stable currency is a tool to expand the influence of the U.S. dollar fiat currency. I think this view is not accurate. Although Libra has announced the types of fiat currencies and their respective proportions in the basket of fiat currencies it currently targets, it remains to be seen whether the current design can actually be implemented. This is clearly the focus of attention of the relevant sovereign currency countries involved.

In addition, Libra's anchoring of a basket of currencies will also bring about exchange rate risks and unstable currency basket structures. Wang Yongli, the former vice president of the Bank of China, pointed out that it seems that the continued stability of the Libra basket currency structure and the stability of Libra’s exchange rate against various basket currencies can only be one of the two “stability”, and this will generate exchange rate risks, but for This undertaker may be the holder of Libra. How to maintain the currency structure behind Libra during the dynamic redemption and redemption process of Libra has become a difficult problem.

secondary title

Regulatory pressure, will Libra's new currency basket come?

Recently, the spurs of relevant regulatory agencies are still increasing.

The Group of Seven (G7) pointed out in its report that cryptocurrencies such as Libra pose risks to the global financial system, and that no stablecoin project should start operating until regulatory challenges are fully addressed. The Financial Action Task Force (FATF) has also expressed unease about Libra, saying the stablecoin could have serious implications for global efforts to combat money laundering and terrorist financing. "If the stable currency incident spreads, it may lead to new risks in money laundering and terrorist financing." The Group of 20 (G20) believes that Libra "will cause serious risks" in terms of supervision and other aspects, and it should not be issued until the risks are dealt with. .

Whether it is the various controversies caused by Libra's anchoring of a basket of currencies, or what regulators have pointed out, Libra will disrupt the financial order and cause new risks of combating money laundering and terrorist financing. Libra is seeking solutions to this, and changing the currency Basket, look for alternatives or maybe one of them.