Babbitt Column | Libra White Paper 2.0 cancels support for multiple languages ​​including Chinese. What does this mean?

Under tremendous pressure and despite all kinds of obstruction from government departments, Libra revised its white paper and pointed out the main point in the first sentence of the white paper: the white paper released in June 2019 has been eliminated!

This update is also called Libra White Paper 2.0. In this version, Libra tries its best to maintain the original vision (a globally circulated stablecoin and application development platform), but emphasizes the importance of compliance. In general, the updates are in the following four points:

1. In addition to multi-currency coins, single-currency stablecoins are also available.

Libra's explanation for this is that multi-currency Libra may affect monetary sovereignty and monetary policy. It is very clear that if it is anchored to a basket of fiat currencies, this strange species will become implicitly superior to the currencies of various countries, and the monetary policies of the countries in each currency index will not have much impact on it, that is, the independence of monetary policy of the national currency after being integrated into Libra has been weakened. As the global settlement currency and the hegemon of global currency, the United States cannot allow this form to exist. The single-currency stablecoin is different. It is more like Alipay and WeChat. Not only will it not affect monetary policy, but it will strengthen global liquidity, which is something that the United States and other countries like to see. Therefore, Libra will change from a global index currency to a US dollar stablecoin that competes with DC/EP. From this perspective, Libra's original ambition after making a compromise has been stillborn, and it has become a gunman under political forces.

2. Improve the security of the Libra payment system through a strong compliance framework.

"Compliance" and "security" declare that Libra is moving towards legal digital currency.

3. While maintaining its main economic characteristics, it abandons the future transition to a permissionless system.

Abandoned the transition to a future without permission system. In one sentence, it can be said that the original idea of ​​decentralization has been shattered. It can be seen that due to various reasons such as politics and interests, decentralization is basically impossible to be achieved by centralized projects. Bitcoin and Ethereum are the only way to achieve this path.

4. Incorporate strong protections into the design of the Libra Reserve.

We have had constructive discussions with regulators about how to handle extreme scenarios, in particular how the Reserve will function in stressed situations and what requirements and protections will be in place for Libra token holders. We have incorporated strategies based on other systemic approaches into the design and structure of the Reserve. The Reserve will hold assets with short-term maturities, low credit risk, and high liquidity. It will also maintain a capital buffer.

After being designed by regulators, Libra looks more like an electronic bank with 100% margin.

The former Libra official website supports 9 language versions including Chinese, and has white papers in corresponding languages

The current official website only supports English and no longer provides multi-language support

Test it with the previous language link - website/zh-CN will jump to - website/en-US/?noredirect=en-US

I searched on Google for the component with the suffix "noredirect", and found that it has the function of controlling user access, which means that multi-language versions including Chinese have been prohibited from access, and all language pages will be redirected to the only remaining English version.

Libra initially spent a lot of effort to support nine languages ​​and translate the white paper into multiple languages ​​for global development. However, when the white paper 2.0 was released, all of this disappeared along with the original dream.

what does that mean

It is impossible for a hegemony to be controlled by a hegemon while overthrowing the hegemony. Libra was originally envisioned as a very subversive modern currency optimization system. It can achieve a more stable global currency by anchoring a basket of currencies. Although countries still have the right to mint coins, it can prevent the impact of black swan events in a single country from causing monetary inflation. In the update of Libra 2.0, we can see that although this original intention has not been abandoned, it is already a long way off to achieve. Libra has been transformed into a digital currency created by leading companies for their own currencies.

For the cryptocurrency world, the significance of Libra’s emergence is limited to the impact on existing US dollar stablecoins, and compliance means that deposits and withdrawals for users outside the United States will not be smooth, while US users can deposit and withdraw funds with fiat currency, so I predict that Libra’s overall impact on the cryptocurrency world will not be significant.

From aiming to be a global settlement currency at the beginning to becoming an optimization solution for global settlement of national currencies in the end, Libra can be said to have collapsed halfway through its business, which is regrettable.

But as I said before, Bakkt and Libra are equally worthy of attention. Bakkt is not limited to exchanges. It actually wants to use BTC to do what Libra does, that is, to convert BTC into a global settlement currency. Now that Libra is stillborn, let us look forward to Bakkt together.

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