Facebook's digital currency Libra, which is due to be launched next year, has attracted the attention of central banks around the world. Although its chances of entering China's formal circulation are slim, many central bank officials and former officials have responded.
Zhou Xiaochuan, former governor of the Central BankExpressLibra's improvements on encrypted currencies in the past are reflected in two aspects: first, it absorbs the lessons learned from the past over-achievement of encrypted currencies, emphasizing that 100% reserve is not speculative but a trading medium, which can avoid large fluctuations in currency value and speculative elements; second, Libra has changed cross-border business.
Zhou Xiaochuan said that the emergence of Libra has put forward an idea that has had an impact on traditional cross-border businesses and payment systems. In the future, there may be a stronger currency with more internationalization. It may have a convertibility relationship with the main sovereign currencies, and even become the major circulating currencies in the world.
Wang Xin, director of the Central Bank Research Bureau, said that encrypted currencies such as Bitcoin could hardly function as currencies. They could only be called encrypted assets and had limited impact on Legal currencies and monetary policy. However, if Libra and other stable currencies are widely used as payment instruments, they may play more monetary functions. They may also create money (through Libra to carry out credit), impact legal currencies and reduce the effectiveness of monetary policy.
Chief Executive Zhou XuedongThen sayBoth legal and virtual currencies are subject to regulation.