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With companies like Amazon, the parent company of Google, Alphabet, and Facebook becoming the world's most valuable listed companies, Big Data is becoming the most important product in the world. Meanwhile, regulators are struggling to keep up with the changing environment.
The most recent technological initiative – and a source of concern – is Facebook's plan to introduce a new digital currency, Libra.
A cryptocurrency used by the two billion social network users could actually create a new world currency, which can even compete with the dollar, the yuan or the euro.
However, since Facebook once misused data on billions of people, many politicians oppose cryptocurrency on the grounds that it also poses a threat to national economies.
The loss of sovereignty is a source of major concern for the French finance minister who has expressed his concern about a cryptocurrency with considerable power, but without rules or obligations. The issues of money laundering and terrorist financing are also concerns for the US Treasury Secretary.
Although Facebook says its influence on the Libyan currency will be limited, its use in the global payments market will make it extremely rich.
"Libra will be the first major cryptocurrency … introduced by a large company or company," said Naeem Aslam, chief markets analyst at Think Markets, comparing it to something like Bitcoin, which he says is decentralized and driven by the user community.
"Innovation is always important for our ecosystem, and it always helps make things more efficient, so yes, it's critically important that we see these innovative ideas, these innovative new technologies, and these emerging currencies." ", did he declare. Count the cost.
"But there should not be a wilder west about them, they should adhere to regulations and make the regulatory framework even more efficient," he adds.
China: currency manipulator?
The intensification of the trade war between the two largest economies, China and the United States, is a new battleground: monetary valuation.
After the Chinese government eased control of the yuan, allowing the currency to break the US $ 7 mark, the US reacted by pointing to China as a "money handler."
The disadvantage for Chinese consumers is that they will pay more for imports. But because the yuan is worth less than the yuan, Chinese exports become cheaper and more competitive in the United States and around the world, offsetting the US tariffs on Chinese imports.
"China is trying to say that the United States will not be bullying and will be a little reminder of the escalation of the trade war and what China can do," said Dan Wang, of the United States. Economist Intelligence Unit. But, she adds, a new escalation is "highly unlikely".
Considering China as a currency manipulator is "more of a political statement" of the United States, said Viraj Patel, global macroeconomic strategist at Arkera. But he fears that the US is willing to "bend the rules" to make this statement.
"It's more nuanced than simply labeling a country the size of China as a currency manipulator," he said. "I think that the United States must take a step back … The American approach is completely wrong. As soon as you apply tariffs, as soon as you adopt a more aggressive position with regard to the China, they become defensive. "
Patel says the pursuit and escalation of the commercial "war" between the two powers could be very damaging. "At some point someone has to give in, but there is no end in sight here," he says.
Source: Al Jazeera
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