Thread by @ChinaFinance40

THREAD: A recent speech by Zhou Xiaochuan, former #PBoC governor, in which he addressed what #China should do in terms of issues like foreign exchange management and dealing with various new challenges with the emergence of #Libra: cf40.org.cn/uploads/newsle…
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Compared with previous crypto currencies which have tended to be turned into speculation tools, #Libra has two major progresses-one is it changes the mode of currency issuing; second is it targets cross-border business. 2/6

Libra will greatly impact traditional cross-border business and #payment system. In the future, a stronger currency may come up and be connected with the existing main sovereign currencies, and even become a dominating currency in circulation globally. 3/6

However, it’s still too early to predict whether Libra will become a success or not. It is also possible that Libra will be replaced by another crypto currency that is better designed, being more stable and efficient. 4/6

With the rapid development of science and #technology globally, #China needs to get prepared against erosion from Libra or any future currency, making #RMB a strong currency and render it advantageous in the future global competition.5/6

What’s equally important as developing the economy, is conducting prospective research and proposing policy suggestions which can help us get better prepared in the face of various challenges and ensure sound development of the economic and financial system.6/6