Nobel Prize winner: Only losers trust Facebook with their money

That Libra from Facebook shares the opinions is no secret. Economist and Nobel Prize winner Joseph Stiglitz also shares his opinion about Libra.

Facebook is getting more and more opposition

The Nobel prize-winning economist Joseph Stiglitz says that only a fool would trust Facebook with his money. He says that his biggest complaint regarding traditional currency was instability. With the emphasis on was: “The dollar, the euro, the yen and the renminbi are all remarkably stable. Today’s concerns are more about deflation and not about inflation. “

He also believes that the banking sector has become considerably more transparent. “It is becoming increasingly difficult to launder money in our banking system and for other shameful activities. Stiglitz believes that the current technology of banks already makes fast transactions possible, which is why he describes Libra primarily as a medium to circumvent regulation and anti-money laundering policies.

“The last thing we need is a new tool to enable illegal activities and money laundering, which this new cryptocurrency will certainly take care of,” writes Stiglitz.

Although he now sounds like a proponent of the banks, and as someone who is against cryptocurrency, he also remains critical of the banking system. He mentions the lack of competition as the biggest problem in the banking sector, and especially when you look at the American market. “American regulators should intervene.”

Many questions, few answers

He sees “deposits” as a possible source of income for Libra if Libra should not pay interest on this. He also wonders if tax should be paid when a transaction takes place and the cryptocurrency is translated back to fiat.

He sees two possible business models for Libra, stimulating illegal activities and using all the data that you can get from Libra transactions. “If the business model tends towards the first option, then this requires immediate discontinuation, if the second option is the case, it will have a negative impact on consumer safety and privacy.”

”Facebook only needed a few years to completely lose consumer confidence. It took the banking sector much longer to reach that level. Time and again, the Facebook leaders, faced with a choice between money and keeping their promises, have opted for money. And nothing can be more about money than creating a new currency, “Stiglitz concludes.

You can read his entire story on Project Syndicate.