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Is Libra Dead?
Why that might be the wrong question to ask
PayPal, eBay, Stripe, Mastercard, and Visa have all recently withdrawn their support for Facebook’s plans for a global digital currency network by pulling out of the Libra Association, the network’s governing body. With the news of these high-profile dropouts, it certainly feels as though Facebook’s plans may be slowing down, with many asking whether Libra is now effectively dead in the water.
For individuals and parties in strong opposition to Libra, these developments may induce a sense of relief. But this relief is shortsighted. The complex issues Libra raises are not going away anytime soon. Rather, they are questions the global community will have to confront. It’s not a matter of if, but when.
What do we really mean by financial inclusion?
The primary justification for Libra is the now-banal narrative of “financial inclusion.” As declared in its white paper, the Libra Association believes that “global, open, instant, and low-cost movement of money will create immense economic opportunity and more commerce across the world.” This statement reveals a dark truth about financial-inclusion narratives in general. We should be asking who gets the economic opportunity, and who simply gets left with more commerce? Is this the lofty aim of financial inclusion — to spread predatory, Western consumerism around the world? To provide another way for the haves to exploit the have-nots? Who is made better? Who is worse off?
What are the limits of corporate power?
Can or should a for-profit corporation (or even a consortium of for-profit corporations, albeit under the tax cover of a Swiss nonprofit organization) issue a de facto stable currency that could threaten sovereign currencies around the world? Is corporate-run monetary policy a usurpation of national sovereignty? How would a corporate-backed stablecoin affect or impede the ability of national governments to control their own money supply? Does this exceed the acceptable limits of corporate power? (Are we even still willing to impose limits on corporate power?) What are the checks on such corporate power? Where does the legitimacy come from?
