[Exclusive] Digital Economist: Facebook’s Stablecoin Has No Breakthrough Innovation and Won’t Challenge Traditional Financial Order
[ChainDD report] June 20 (ChainDD) In his interview with ChainDD, Liu Zhiyi, a Chinese digital economist, said the argument that Facebook’s launch of its stablecoin is a move to challenge traditional financial order seems too immature.
“We will see the (Libra) Association is more like a trial that Facebook collaborates and binds many established companies, especially major financial institutions, than so-called disruption. Since Facebook chooses an ecosystem of stablecoin, it decides to become an ally with conventional financial firms, instead of being a rival in digital economy, no matter what the stablecoin is pegged with,” Liu told ChainDD.
Liu noted Libra’s ecosystem, in essence, is totally private, controlled, centralized, permissioned private alliance chain which is verified by a few super nodes. While the breakthrough innovation aspired by most of observers currently seems envision at best.