Thread by @ChinaFinance40

(1/6) If #Libra is legally accepted and operated, what countermeasures China should take? What will be the main implications for foreign exchange management? Please read an original article produced by CF40. mp.weixin.qq.com/s?__biz=MjM5Nj…

(2/6) China's foreign exchange management has different priorities at each stage. In the first stage, the shortage of foreign exchange constrains economic development. In the second stage, foreign exchange facilitation lies in the focus of foreign exchange management.

(3/6) In the third stage, #Renminbi is included in SDR basket, marking a significant increase in the free use of the RMB, and there will be a significant increase in the degree of integration between local and foreign currencies in the future. #RMBinternationalization

(4/6) With globalization of technology development, we can't conclude whether Libra will erode sovereign currency in the future; but it is important to maintain #RMB as a strong currency.

(5/6) China should take following countermeasures if #Libra is legally accepted and operated in the US. 1. China should actively participate in the regulatory talks and cooperation; 2. Chinese companies should be accepted as members of Libra association;

(6/6) 3. expedite research on #CBDC and application of #blockchain in #payment infrastructure; 4. Prohibit Libra exchange activities before the US or #G7 come up with mature regulation and rules; 5. come up with relevant standards for blockchain technology.