Global Bank Official Warns: Facebook’s Cryptocurrency Project a Real Danger

A high-ranking European Central Bank (ECB) official recently outlined a number of problems he found with Facebook’s planned cryptocurrency Libra.

His critique is the latest in a number of warnings from various government officials around the globe. 

“I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favor of the beguiling but treacherous promises of Facebook’s siren call,” said Yves Mersch, a Luxembourg member of the ECB’s executive board. 

During a speech at a Frankfurt legal conference, Mersch noted that Libra was being produced from the “the very same people who had to explain themselves in front of legislators in the United States and the European Union…on the threats to our democracies resulting from their handling of personal data on their social media platform,” a reference to Facebook’s recent testimonies in front of various governments.

Mersch raised a concern that Libra coins will be issued by a cartel of technological giants.

Big tech companies are spread throughout the fields of financial tech, e-commerce and telecommunications. Members of the Libra Association include Mastercard, PayPal, eBay, and Uber. 

“With such a setup, it is difficult to discern the foundational promises of decentralization and disintermediation normally associated with cryptocurrencies and other digital currencies,” he said.

“On the contrary, similarly to public money, Libra will actually be highly centralized, with Facebook and its partners acting as quasi-sovereign issuers of currency.” 

Global concern

Public fiat currency also is centralized but, unlike Libra, it’s backed by what Yves calls a  “sovereign entity and a central issuance authority.”

Mersch fears that corporate entities accountable only to their shareholders will abuse their privileged access to private data contained in a potential Libra ecosystem. 

European policy makers aren’t the only ones concerned with Facebook’s cryptocurrency. In April 2018, the Reserve Bank of India banned all regulated entities from dealing in cryptocurrencies. 

Subhash Garg, India’s Economic Affairs Secretary told Bloomberg that the “design of the Facebook currency has not been fully explained. But whatever it is, it would be a private cryptocurrency and that’s not something we have been comfortable with.”

Bulletproof Your Portfolio Now!

A smart investor should be prepared for anything. That’s why David Frazier created the Bulletproof Wealth Report. This comprehensive investment service is everything you will need to survive and thrive in the looming meltdown. In other words: It’s how anyone can make their portfolio bulletproof. It’s a mix of fast-growing, leading companies that are the engine of American prosperity. To that he adds a healthy dose of “insurance policies” i.e. stocks and funds that benefit when the next recession strikes. The future favors the prepared. You can be prepared. Not only that — you can profit.
Bulletproof My Portfolio!

Cryptocurrency Will Shine Through the Coming Chaos

While the U.S. spends and spends and spends its way into oblivion, the eventual result will be inflation. Serious inflation. The dollar will crash, gold will shoot higher and Bitcoin, well, it can only become more scarce and more valuable. There’s a natural ceiling to the number of Bitcoins that will exist — ever. By design, there can only be 21 million of them. Soon, the ceiling will be hit. Now is the moment to get into cryptocurrency. There’s a been a rise of late, but prices are consolidating, setting up for the next leap higher. Grab Keene Little's widely followed cryptocurrency newsletter, Crypto Wealth Protocol completely risk free.
Yes! Send Me A Free Issue

Leave a Reply

*