Where are you worried? Powell pointed out that the Libra project is raising risks in terms of privacy, money laundering and financial stability. In his view, if Facebook can't answer some of the questions that may arise from its cryptocurrency project and is generally satisfied, the project cannot continue.
Powell also revealed that a few months before Facebook released the Libra plan, there were representatives and the Fed, and the Fed is also forming a working group to study the issue of cryptocurrency and coordinate US regulators and other central banks to assess the above concerns.
Zhou Xuedong, director of the People's Bank of China, said bluntly that the Chinese central bank is also concerned about this (Libra project). Whether it is legal tender or virtual currency that has emerged in recent years, there is a consensus that we must accept supervision, such as anti-money laundering, anti-terrorism financing, and information protection.
Zhou Xuedong emphasized that China's legal currency is the renminbi. Only the renminbi is legal, and other virtual currencies are not legal.
Bank of England Governor Carney, who had previously said that Facebook’s cryptocurrency program would remain “open minded”, seemed to have turned his mind.
At a recent press conference, Carney said that Facebook's cryptocurrency must be "rock-solid" from the beginning, otherwise it should not start.
He believes that if Facebook's cryptocurrency is successfully issued, it will become systematic. Because it involves a large number of users, it must remain in normal operation, no problems, and no money can be lost from people's wallets. In addition, in the face of the Libra project, it is also necessary to consider how to deal with the issue of money laundering and terrorist financing.
Carney said that the G7 Group has set up a working group to understand Facebook's Libra cryptocurrency and weigh the risks and opportunities.
What is the future of the unsuccessful Facebook cryptocurrency project? It is reported that the US Congress plans to hold two hearings on the Libra project on July 16th and 17th.
One is a hearing by the US Senate Banking Committee to review the digital currency and data privacy considerations proposed by Facebook, and the other is the US House of Representatives Financial Services Committee called "Reviewing Facebook's proposed digital currency and its Hearings on the impact of consumers, investors and the US financial system. Market analysts, project investors, etc. are waiting to see the attitudes of various regulatory agencies in various countries to assess whether the Libra project can be successfully implemented.
"Libra needs to go a long way to become a currency." Li Yang, member of the Chinese Academy of Social Sciences and chairman of the National Financial and Development Laboratory, believes that money is a country's sovereignty, and big countries will never give up easily. Control of monetary sovereignty.
Li Yang pointed out that Libra's currency exists in two systems, one set is similar to SDR (Special Drawing Rights), some currencies are weighted by some weight to form an asset package, and the other is to raise the funds it raises. Investing in a series of highly liquid assets traditionally invested by the central bank is similar to money market funds. In daily operations, whether Libra is based on a basket of currencies or based on money market funds, this is a conflict, which is the direction Libra still needs to explore.
Although the future is still unknown, the impact of the Libra project cannot be ignored. Zhou Xiaochuan, the former governor of the People’s Bank of China, believes that Libra’s proposal has had an impact on traditional cross-border business and payment systems. In the future, there may be a stronger international currency, which may have a relationship with the current major sovereign currency, and even become the world's major currency.
“We believe that from the trend of recent years, many institutions are trying to establish such a more global currency, and then there will be problems with strong coins eroding weak currency. This is for our RMB and foreign exchange management. A challenge," said Zhou Xiaochuan.