Hong Kong, China -- (ReleaseWire) -- 07/15/2019 -- On July 15, 2019, the World Digital Currency Bank was officially established in Suriname, South America, as global financial people focused on the social media giant Facebook's issuance of currency. According to information, the World Digital Currency Bank is the world's first digital currency-based banking institution. The Asia-Pacific headquarters is located in Hong Kong, China, uses Hong Kong's status as a financial bridgehead and digital currency as a starting point to carry out multi-level banking business.
The news is like a thunder, and explodes in the financial world. In particular, the banking practitioners are talking about who is behind "World Digital Currency Bank"? What is the intention of its establishment? What impact will it have on the world financial industry?
No matter how people guess, they have to admit that the development trend of digital currency cannot be halted, and that "embrace and change" will gradually become the consensus of the financial world. According to insiders, the Libra Association, the governing body behind Libra, the digital currency led by Facebook, is negotiating with several top US banks, hoping to involve them in this. As early as February 14 this year, JPMorgan Chase, the largest commercial bank in the United States, has announced the issuance of cryptocurrency - JPM Coin.
The establishment of the World Digital Currency Bank will not only play a leading role in financial institutions' demonstration in the layout of digital currency assets, but will also become a booster for promoting the development of digital currency, and will provide new business growth for the stagnant banking industry. According to insiders, the World Digital Currency Bank also plans to set up a digital currency banking association on a global scale to maintain the industry market order and promote the healthy development of digital currency in the banking industry. We can expect that more and similar digital currency banks will develop all over the world in the future.
However, the establishment of World Digital Currency Bank seems to have a more ambitious goal. It is understood that on July 4, 2019, World Digital Currency Bank and Asia Digital Currency Limited signed a strategic cooperation agreement in Kowloon, Hong Kong, to reach a consensus on the global payment promotion business of ACU, and the World Digital Currency Bank will devote its bank's professional qualifications and industry resources to promote the rapid implementation of ACU RMB stable currency. The two giants have realized strategic integration and comprehensive resource integration.
ACU is a blockchain application developed based on the Ethereum ERC2.0 standard and is issued by Asia Digital Currency Limited in Hong Kong. With the participation of auditing institutions, ACU will take offshore RMB as the settlement standard and pay according to the offshore RMB 1:1. RMB 1 trillion will be issued in the first period, which is mainly used for the global payment business of ACU, and the global circulation of RMB will be realized through different levels of layout.
The issuance of Libra has caused a lot of discussion in the industry, and many senior experts in financial field have applauded it, however, in my opinion, ACU shall also not be underestimated. It is hard to say which one is better in the future. There are three reasons for this:
First, Libra is ostensibly to develop the world's inclusive finance, but actually, it is an extension of dollar hegemony. In recent years, the US government represented by Trump, with "America First" as a slogan, has harmed the interests of people all over the world at the cost of damaging America's national credit. Such practice has caused strong dissatisfaction and opposition from the international community and has gradually made United States lose its prestige and status as a global leader. Although Facebook platform has 2.7 billion users and 90 million companies, many big countries have clearly expressed their concern about the US hegemony behind Libra. In particular, China and India which account for more than one-third of the world's population (with a combined population of more than 2.7 billion) will never easily allow Libra to influence its currency payment policy. In addition, Europe, Africa and most countries and regions in Asia have their own financial development paths in combination with their actual situations, which are not the back garden of the United States. In this way, only traditional American spheres of influence such as the America and Oceania may strongly support the development of Libra. Furthermore, the decentralized encrypted digital currency represented by Bitcoin, DASH, etc., has developed rapidly in developing countries or least developed countries with fragile financial systems, thus it is not easy for Libra to replace it.
Secondly, Social software capacities are limited. Although Facebook is a technology giant with high market value, its social software cannot become a rigid demand product like oil. In 1971, the Bretton Woods System collapsed and the US dollar was decoupled from gold. In order to keep the world dependent on the US dollar, the United States ensured the status of petrodollars with its strong military strength, and then forcibly continued the hegemony of the US dollar by continuously printing money to buy global assets. Most countries are suffering. Iraq, Libya and Iran, which once wanted to challenge the status of petrodollars, were eventually defeated or suppressed by the powerful military strength of the United States. However, oil and social software are still different essentially. At present, people's daily life and production and construction must depend on oil. However, people can also use other social software without Facebook, such as WeChat and Twitter. Under the supervision of the Chinese government, Facebook currently is unable to enter the world's largest consumer market. In particular, Facebook exposed a huge scandal of privacy disclosure in 2018, which has aroused worldwide concern and anxiety. Once Libra hits on the country's financial security, it is easy to ban Facebook clients at the national level, and other social softwares will soon replace it. This will be an excellent opportunity for its competitors not to be missed.
Thirdly, It is a great practice to build a community of shared future for mankind through consultation. On December 10, 2018, president Xi Jinping, China's top leader, wrote a letter to the symposium commemorating the 70th anniversary of Universal Declaration of Human Rights, clearly stating: "the Chinese people are willing to work with people of all other countries ... to build a community of shared future for mankind and create a better future for the world." A community of shared future for mankind is a strategic concept put forward by the Chinese government in recent years on the construction of a new international political and economic order, which reflects China's willingness to participate in the construction of a new international order under the condition that its overall national strength is constantly increasing. This is in sharp contrast to US president Trump's slogans such as "America First" and "Make America Be Great Again". Moreover, the "Belt and Road" advocated by the Chinese government will promote economic connectivity and cooperation benefiting two thirds of the world's population. From 2013 to 2017 alone, the trade volume between China and countries along the "Belt and Road" reaches 50 trillion yuan. If these large amounts of trade are settled in RMB stable currency, the efficiency of payment will be greatly improved, which may be an opportunity for the RMB stable currency ACU.
Facebook's currency issuance is caused for attracting the attention of governments around the world to digital cash. Asia Digital Currency Limited, which has reached a strategic cooperation with World Digital Currency Bank, will provide a brand-new development path for RMB internationalization and digitalization by issuing the RMB stable currency ACU. But no matter what the future holds, RMB may be the biggest winner in this game!
Company Name:Asia Digital Currency Limited
Contact Person:Darren Chen
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