This article comes fromForbes, the original author: Panos Mourdoukoutas, Chair and Professor of Economics at Long Island University Post (LIU Post), New York
Odaily Translator |
Odaily Translator |
Facebook's proposed global digital currency Libra is actually "another" payment system, which can be seen as a better enhanced version of PayPal, but it should be noted that compared with Bitcoin or other mainstream cryptocurrencies, Libra is not It is not like, nor is it, a "free currency".
OptDyn CEO and founder Alex Karasulu had this to say about Libra, saying:
"Libra's blockchain is a permissioned blockchain, which means that only authorized validators can process transactions on the network. The 100 corporate members of the Libra Association will act as transaction validators, which means that they have been a validator from the beginning. Cartels, may cause problems for organizations outside of the Libra Association, and may not even deal with Bitcoin supporters and crypto-anarchists.”
(Odaily Jun Note: A cartel is an organization composed of a series of independent companies producing similar products. The collective action of producers aims to increase the price of such products and control their output. According to the US antitrust law, the cartel is illegal In addition, an enterprise that produces or sells a certain kind of commodity, in order to monopolize the market to obtain high profits, forms an alliance through agreements on commodity prices, output and sales, such as monopoly interest groups, monopoly alliances, business associations, and industry Alliances, also known as cartels, are also a form of monopoly organization.)
For those who really believe in Bitcoin and cryptocurrencies, Libra is not a currency that liberates transactions from the control of "centralized institutions", which is obviously different from Bitcoin, or other mainstream cryptocurrencies.
In addition, Libra is not actually a "safe haven" for investors who worry about fluctuations in the exchange rate of sovereign fiat currencies, because Libra is backed by a basket of sovereign fiat currencies, that is, its value will be determined by the central bank of the anchor currency. long-term and related monetary policy implications.
In short, Libra lacks the "morality" of blockchain. To most cryptocurrency proponents, Libra sounds hollow, but there's no doubt that with the billions of users on Facebook, and the 100 founding member platforms that use Libra for transactions, we should see Libra gain some traction. Market Competitiveness.
At the same time, Libra will pose a threat to mainstream cryptocurrencies. Why do you say that? Because for most ordinary people, they don't pay special attention to the essential difference between Libra and real cryptocurrencies, and many people may simply use Libra as a cryptocurrency.
Wayne Chen, CEO of Interlapse Technologies, also agreed with Libra's impact on mainstream cryptocurrencies, saying:
"Regardless of technical and derivative differences, Libra's stability will have a compounding effect on the entire cryptocurrency industry."
The Libra Association is a cartel. In addition to having a huge impact on the cryptocurrency community, it may also encounter more problems at the traditional financial and regulatory levels, such as national security, investor protection, and liquidity.
Not only that, but the emergence of Libra also poses a threat to central banks, because it will have the power to break the central bank's monopoly on money printing, and may even manipulate the economy to meet the interests of powerful elites, which is why Libra is currently subject to regulation, compliance and scrutiny One of the main reasons for many concerns. There are more than 2 billion global users on the Facebook platform. If this "centralized" company is allowed to issue a brand new digital currency, there will undoubtedly be overwhelming consequences.
