Beware the designs of Libra

Facebook has released a white paper on its Libra cryptocurrency project, saying its goal is to issue a "stable currency built on a secure and stable open-source blockchain, backed by a reserve of real assets, and governed by an independent association", which sparked heated discussions worldwide, especially in the political and financial circles.

US government organs, including the House of Representatives, and G7 finance ministers and central bankers have strongly opposed the program, fearing Libra could pose a challenge to sovereign currencies, the US dollar included. Some experts and scholars, however, argued Libra could create new opportunities for the traditional financial industry.

Irrespective of whether or not Libra is issued next year, as Facebook said, the release of the white paper is an audacious attempt to introduce a cryptocurrency with the aim of breaking the traditional financial and currency systems. Once launched, Libra, thanks to Facebook's more than 2 billion-user base and strong industry consortium, could greatly reduce the time and cost of cross-border banking transactions including international payments and settlements, and foreign currency exchanges - and set the restructuring of the global financial system in motion. It could also signal the end of other cryptocurrencies including bitcoin.