Gu Yanxi: Facebook should do the ST exchange, rather than a stable currency

Editor’s note: This article from the currency, the author: Gu Yanxi, Huatai Securities served as deputy director of information technology and several Financial Services Company COO, authorized reprint by Odaily daily planet.

The future of the encrypted digital asset is a digital network of financial ecology. This is a chain of ecological block bottom support, on the basis of the company is the certificate model of economic organization mode of cooperation and competition. In such an ecological in the future, each user’s identity is confirmed after verification, to ensure privacy and guarantee the identity of the real state of the existing in both. In the real world of various types of assets by way of ST in this ecosystem in market and circulation. The formation of a stable currency circulation in this ecosystem will be based on these assets. Digital assets and stable currency users are stored in the chain in his wallet. Because the liquidity is very strong exchanges provide digital asset trading services to 7 * 24 hours in the network environment, so users can easily free between digital assets and stable currency own direct conversion. The user only needs a wallet can be traded on exchanges, can also be paid in the retail field, can also transfer to any one wallet address on the chain. In such a network of ecological, current banking and Securities limit is not so clear, securities trading and retail payments will be combined seamlessly.

Such a thing is not out of reach and network ecosystem, the prototype is in the United States market in STO. The STO market is providing basis of each part of the network environment, including real assets through securitization and traded, in a distributed manner in digital assets mortgage found on stable currency, through the transaction and payment links, encrypted digital assets trusteeship and liquidation after the transaction and so on in the block chain. But now apparently has the company clearly see the prospect, is progressively moving in this direction. For other companies, see the prospects, combined with its own advantages, is now ready to set up their own unique value in the future is very important in ecology.

In the current development of encryption of digital assets at this stage, all companies are basically at the same starting line, whether it is traditional financial companies, the success of the company or the Internet industry, or the development of the block chain and encrypted digital industry is flourishing, even before the advent of the company. For these players, see the future development prospects and to adhere to the correct strategy, there is a great probability to grasp the opportunities brought about by the chain block. Of course, these companies also include Facebook.

According to the news report, a strategy of Facebook in this area is to develop their own currency stability. In addition, although there have been reports of Facebook purchased some block chain company or the same number of block chain company had contact, but there is no official reports on this aspect of the strategy of Facebook.

In the digital network to the financial ecological goals in the process, the most important thing is to distinguish the order of priority, clear objectives, so it is really possible to establish their own in the future ecological in a space for one person. For Facebook, I think the stable currency at this stage is not suitable for Facebook. Facebook should do now is to create a block based on open chain technology support ST distribution, marketing and trading network ecosystem. Such an ecological value will be much larger than the Facebook of a company’s equity value to. Moreover, the U.S. STO market development space in the future, the stage of development, the current regulatory system, the stage of technology development, competition, products and users of the operation space, a variety of advantages and Facebook itself is for Facebook is one of the best opportunity.

In the development of the market space, although the US STO market is still very small, but I think that in the future there is a huge space for development. We in reality various rights and assets are going through the mapping of ST to encrypt the digital assets in the world. The volume will be far more than the current stock market.

According to the current regulatory system of the United States, ST is mainly used to deal with the offbeat assets, but also can make equity financing in small scale within the scope of. ST basically is to raise funds mainly based on private, but can also be raised in a small range. And it can be raised to the user, can also be raised to overseas users. In the relevant regulatory licenses, the various regulatory licenses can also support the fundraising process, including investment banking, trading, asset custody and investment banking licence. So any company in the United States as long as the holders of the relevant licenses, the relevant business can carry out compliance STO. This course also includes Facebook.

In the aspect of the development of technology, technology system has begun to move to the direction of distributed system. Some distribution platform is complete in block chain network operation support, some trading platforms also uses a centralized and distributed liquidation mode matching. But the market still lacks a bottom block chain companies can share. This is the underlying basis of future ST financial ecology based on its value as can be imagined.

In the competition, the U.S. STO market are the main participants in start-up companies, whether it is on the issue of the platform, trading platform and marketing platform, or assets hosting company are so. In this market, Facebook is definitely a 800 pound gorilla. The various segments of the existing participants not Facebook opponent.

In the time sequence of development, due to the U.S. STO market is still in the early stages of development, so business development is not too fast, the trading volume is not too large. This gave Facebook enough time and opportunity to develop and improve the technology related to the system. The technical aspects of the development work is in fact with the development of STO market and simultaneously. The advantages of Facebook itself is obviously. It covers the world a huge social network is any financial companies are coveted goal of cooperation. The pursuit of Starbucks will look at Bakkt as can be imagined. A digital wallet Facebook in its clients can trade and payment, it can immediately improve the encrypted digital assets and use scope. In the financial business, Facebook Facebook and Facebook Pay had developed Credit products, so it has very good accumulation in the relevant technical and business aspects. These are Facebook to ST network construction of digital financial ecological trading platform as the center of the advantage. Once the ecological building up, a stable currency is one of the products. Can a provider to offer this product competition way. And there will be a stable currency more reasonable mechanism, instead of the simple encryption of digital currency.

However, I think that in this process, the biggest challenge for Facebook is neither technical nor business, but the ecological organization form. In the block chain support in the business world, the best form of organization must be the same type of company based on token chain and chain combination model of governance, by the cooperation and competition of the mode of operation of the. Whether Facebook can be the first to lead the development of the construction of the network, but did not become the exclusive network, this is a huge challenge for it. If Facebook can set up a network that uses the blockchain ecological technology and this governance model, competitors will not give too many chances. On the contrary, a traditional closed network will bring many competitors, the chances of success are greatly reduced. I think of Facebook, in the governance mode is the biggest challenge, after all, change the thinking and operation habit is very difficult.

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