Facebook’s plans for a digital currency called Libra have aroused considerable attention. In June，Facebook and 27 partner companies officially announced their plan to launch Libra in the first half of 2020. They said the digital currency – to be managed by a nonprofit institution – would have numerous advantages such as low price volatility and lower transaction costs. Meanwhile，an already established player in digital finance，Bitcoin，has seen its price soar this year as the cryptocurrency market heats up. Does this herald a new era of digital currencies and what effect will Libra have on financial markets?

At a roundtable discussion organized by China Forex，Chinese economists Wang Yongli，former vice president of Bank of China and chief economist of the Neptunus Group，and Peng Wensheng，vice president of China Everbright Research Institute and global chief economist of Everbright Securities，shared their opinions on the prospects for Libra and other cryptocurrenices. The conversation，which follows in edited form，was moderated by Zhong Wei，deputy editor at China Forex.

Zhong Wei: First，I’d like to welcome our two guests. Since the launch of Bitcoin and Ethercoin，there has been considerable interest in digital currencies. The enthusiasm has extended from cryptocurrency mining to blockchain technology development and cryptocurrency speculation. Many of the terms and definitions in this sector – such as digital currencies，digital assets，and virtual currencies –are similar but not necessarily identical. Could you help us in clarifying some of the terminology?

Wang Yongli: Bitcoin and other web-based cryptocurrencies，without being pegged to any legally protected social wealth， cannot retain stable values.  Whether they are called “coins” or “currencies,” they cannot become a real currency. At best they can be treated as “virtual assets” with highly volatile prices.