IBM is willing to cooperate with Facebook in the digital currency business

 IBM is willing to cooperate with Facebook in the digital currency business

[Wen/Observer Network Deng Ruikan

Facebook-led Libra Monetary Project may usher in new partners. IBM said it was open to working with Facebook on digital money.

However, the company did not specify whether it would join the Libra Association. At the same time, the company said it would focus on asset marking rather than encryption.

Moreover, global regulators have never relaxed the Libra currency program. After receiving a joint inquiry from the 26 central banks last week, Facebook was told that the regulatory approval threshold would be high.

According to CNBC on September 23, Jason Kelley, general manager of IBM Block Chain Services, said the company hopes to promote cross-industry cooperation in the area of Block Chain Technology.

Block chains are a team project, Kelly told CNBC. Our customers are ready to work with [Facebook], and we are ready to work with all of them to integrate them.

Kelly said it was important to distinguish between encrypted currencies and tagging assets. In labeling, everything from money to stocks can be issued on a digital ledger.

Asset marking is to convert the rights of assets into digital markers and store and manage them in block chains. It is a very popular solution and is developing rapidly in new markets outside the traditional financial field.

Kelly also said that companies like Facebook joining the competition would help bring more legitimacy to basic technology.

However, Kelly did not disclose whether IBM was interested in joining the Libra Association.

People say that Libra money is just another kind of encryption. But what were talking about is putting encryption aside and talking about tagging.

CNBC points out that companies like IBM have created their own blockchain solutions to organize data through distributed computer networks, using the principles behind cryptocurrencies such as bitcoin. The advantage, they argue, is that it creates more transparency in almost everything from banking to supply chain management.

It was reported that many people quickly distinguished Bitcoin from the Libra coin in Facebook. Libra will be supervised by a Swiss consortium comprising Facebook, Visa, MasterCard and Premium.

According to a Facebook letter, Libra will be pegged to a basket of currencies, including the US dollar, the euro, the Japanese yen, the pound and the Poor dollar, accounting for 50%, Reuters reported Wednesday.

However, Libra currencies, which are still being planned, remain the focus of global regulators. Both France and Germany threatened to keep it out of the EU.

German and French finance ministers issued a joint statement on September 13 in Helsinki, Finland, reiterating the importance of monetary sovereignty and opposing the implementation of Libra, an encrypted digital currency planned by Facebook Inc. in Europe, Xinhua reported on September 14.

The statement pointed out that the two countries believed that Facebooks Libra Encrypted Currency Plan failed to adequately respond to the above risks. We believe that monetary power belongs to national sovereignty and should not be controlled by private entities.

The two countries also recognize the need to improve the efficiency of the existing international payment system. At the European level, the two countries called on all banks to work together to improve the European payment system and encourage European central banks to accelerate their work on public digital monetary solutions, the statement said.

In addition, the results of Facebooks meeting with officials of 26 central banks around the world on Monday (16) were not optimistic.

At the meeting, Benoit Coeure, executive member of the Council of the European Central Bank, said that as a new technology of the global payment system, the Libra currency had not yet been tested. It also poses serious risks to some public policies, and the threshold for regulatory approval is bound to be high.

The European Commission launched an anti-monopoly investigation

Since the announcement of Libra on June 18 this year, the voice of opposition and doubt has never stopped. Regulators and governments have been asking for more information about the scope and design of Libra.

On August 20, Bloomberg reported that Facebook founder Zuckerbergs ambition to replace traditional cash with Libra prompted the European Commission to launch an investigation into Libras unfair competition.

In a questionnaire sent by the European Commission, EU antitrust regulators questioned Libras possible competition restrictions on the use of transaction-related information and consumer data, resulting in unfair treatment of its competitors by the Libra payment system. Previously, technology giants Google and Apple had been investigated by the agency for the same reason.

The survey also indicated that regulators were studying Facebooks services and applications supporting Libra, such as WhatsApp and Messenger, and revealed that the survey would focus on the governance structure and membership of the Libra Association.

Source: Editor-in-Charge of Observer Network: Wang Fengzhi_NT2541