Facebook's unveiling of a new digital currency, Libra, has produced a tidal wave of skeptical, critical and outright hostile responses. In partnership with 27 other major corporations, firms and non-profits, Facebook has labeled Libra as "a stable global cryptocurrency."

Is it another great innovation for human society or a Pandora’s box that has great uncertainty?

Professor Hu Naijun of the School of Public Policy and Management of University of Chinese Academy of Sciences, says Libra is different from its predecessor digital currency bitcoin in two ways.

First, it's backed by the Libra association which includes Facebook and many other organizations. Second, there would be a reserve behind the currency once it was put into practice.

Vox Day, chief content officer at Unauthorized TV, argues that Libra is not correctly understood by most economists. He thinks Libra cannot be understood until one understands that Facebook is and has always been a tool of the American government.

He also points out that Libra is designed to provide competition for non-government control over cryptocurrencies, and believes that Libra is not something that would be a rival to the petrodollar but something that would end up linked to the petrodollar in some manner.

Since the collapse of the Bretton Woods System, the U.S. dollar has been the only currency for oil trading settlement. Yet, with the rise of new energy, the dependence on oil is falling.

In this context, there has been speculation that with the incomparable user numbers of Facebook, Libra could be the next vehicle of U.S. long-arm jurisdiction.

Einar Tangen, a current affairs commentator, maintains that the U.S. was once one of the greatest importers of oil and now is one of the greatest producers of oil. This idea of a petrodollar has basically evaporated and there has no reason to keep it going. But when it comes to the crucial national interest of any country, Libra cannot be enforced as a means of U.S. long-arm jurisdiction.

As for the impact of Libra and other cryptocurrencies on China, Hu said that from a short-term point of view, China doesn't have to worry too much because there are strict regulations on financial sectors and there's nothing put into reality based on blockchain.

However, from a long-term standpoint, he thinks China should set up a new system of digital currency.

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