Why Facebook's Libra currency gets the thumbs down | Joseph Stiglitz
Only a fool would trust Facebook with their financial wellbeing. But maybe that’s the point of the Libra currency
Facebook and some of its corporate allies have decided that what the world really needs is another cryptocurrency, and that launching one is the best way to use the vast talents at their disposal. The fact that Facebook thinks so reveals much about what is wrong with 21st-century American capitalism.
In some ways, it’s a curious time to be launching an alternative currency. In the past, the main complaint about traditional currencies was their instability, with rapid and uncertain inflation making them a poor store of value. But the dollar, the euro, the yen, and the renminbi have all been remarkably stable. If anything, the worry today is about deflation, not inflation.
Related: What is Libra? All you need to know about Facebook's new cryptocurrency
What is Libra?
Related: Cryptocurrencies have a mysterious allure – but are they just a fad? | Robert Shiller
Related: Libra cryptocurrency: dare you trust Facebook with your money? | John Naughton
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Facebook thinks that its vast coverage and reach with people will secure a good business reception for the new cryptocurrency, but its success is not certain. It is still unclear what the new global financial system will look like with an unchecked and unregulated plethora of virtual currencies.
Facebook thinks that its vast coverage and reach with people will secure a good business reception for the new cryptocurrency, but its success is not certain. It is still unclear what the new global financial system will look like with an unchecked and unregulated plethora of virtual currencies.
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