Only a fool will invest in a new Facebook cryptocurrency, says the Nobel Prize winner

in facebook •  5 years ago 


Nobel Prize winner in economics Joseph Stiglitz believes that only a fool would entrust his money to Facebook.

According to him, the bulk of complaints about traditional currencies are related to the volatility of their value. However, most national currencies have long been "exceptionally stable".

In addition, Stiglitz says that the banking sector has made significant efforts to ensure financial transparency and has made "the banking system more difficult to use for money laundering and other atrocities. The economist notes that the current technology already allows transactions to be carried out quickly enough, so Libra will be used primarily as a means of circumventing existing anti-money laundering requirements and policies.

"The last thing we need is a new mechanism to facilitate illegal activities and the laundering of the resulting proceeds, which will almost certainly make another cryptocurrency", he writes.

Stiglitz sees low competition as the main problem of the banking sector, especially for American banks. The decision will require the intervention of regulators, he adds.

The economist considers "deposits" to be the main source of income for Libra's creators if they do not pay interest to the cryptocurrency holders. He also mentions the issue of taxes to be paid on the transfer of cash and the conversion of cryptocurrency into fiat.

According to Stiglitz, Libra can have two commercial models: aiding and abetting illegal activities and collecting user data. In the first case, the project should be closed immediately, and in the second case, the privacy and safety of consumers may be affected, he says.

"In just a few short years, Facebook has earned the kind of mistrust that the banking sector has had over the years. Facebook management was faced with a choice of whether to keep their promises or make money. Nothing is as much about money as creating a new currency," he concludes.
facebook picture

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Congratulations @artur.aslamazov! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You published your First Post
You got a First Vote
You received more than 10 upvotes. Your next target is to reach 50 upvotes.

You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Vote for @Steemitboard as a witness to get one more award and increased upvotes!

You received a 10.00% complementary upvote from @swiftcash 🤑
To stop similar upvotes from @swiftcash, reply STOP.

Sounds like a smart man. No way people should entrust their money to this untrustworthy organization (for the reasons you mentioned, and many more!).