(BlockBar) Block chain technology has landed a lot of applications, including Taobao is also doing traceability, government departments are also doing bills on the chain and so on. For Facebook, this is the idea of changing the business mode from the previous traffic business to the payment domain, which actually has no essential difference between Alipay and WeChat payment. Therefore, the essence of the Libre plan is to build a global payment tool based on block chain technology and global node construction.
Of course, the event itself is equivalent to interfering the dollar, euro, RMB or other currencies, trying to replace currency liquidity with virtual currency liquidity, so it will have a significant impact on the global financial ecosystem. For this reason, the governments are probable to intervene. What’s more, in the name of virtual currency, it has little relationship with Bitcoin. It is better to say that it borrowed the idea of block chain and virtual currency. Of course, it is a great way to publicize encrypted currency. But in essence, there are still big differences. After all, the money issued is still bound to the sovereign currency. Besides, the price of the service itself cannot fluctuate with the huge price of the currency.
Therefore, Libra is a stable payment tool, not a product with investment value. Similarly, if it continues to develop, it will inevitably have a huge circulation in the future, bound with various sovereign currencies. Only in this way can it serve as a price payment system for global services. Consequently, the biggest significance of Libre plan is to promote the concept of block chain and create a new financial innovation point for large transnational corporations. However, it is sure that the sovereign currency is the basis to achieve borderless payment and to enter the financial system to bring value to innovative revenue.
But this may be bad news for the existing payment tokens. In the future, many large companies may use similar stabilized currencies as payment and settlement tools at any time. Universal, global, convenient and broad customer groups are the core value factors of payment tokens. However, at present, the functional attributes or groups of payment tokens in the currency circle have limitations. This also explains why hammer bullet text messages can’t match Wechat.
Based on this, many payment tokens, including Bitcoin, will actually be affected. This will involve a question of token attributes, whether it is used as a reserve currency or as a payment token. Therefore, the future attributes will determine the issue of competition. Bitcoin’s constant strengthening of its reserve value is the way to survive in the future. The value attributes of other tokens with payment as the core will be greatly weakened.
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