Libra and the Balance of Power
The fate of Facebook’s cryptocurrency hangs in the balance, and with it, the fate of nations
“A simple global currency and financial infrastructure that empowers billions of people.” This is how Facebook unveiled its cryptocurrency, Libra, in June. It was a lofty promise, particularly for those who immediately questioned the so-called blockchain technology that Facebook explained it planned to use. Nevertheless, it seemed like a worthwhile pledge, particularly since it had backing from legitimate, viable, and recognizable financial players like PayPal, Visa, and Mastercard.
Now, all three have left — along with other early backers. PayPal was first, exiting last week. On Friday, Visa and Mastercard followed, along with Stripe and eBay. The mass exodus was expected. Earlier this month, the Wall Street Journal reported financial partners were “reconsidering their involvement following a backlash from U.S. and European government officials.” Among those concerns was that Libra, backed by big companies, could create — as French finance minister Bruno Le Maire put it in September — “a possible privatization of money.”
“The monetary sovereignty of countries is at stake,” Le Maire said. He might be right. But Libra threatens more than that, and Le Maire probably knows it. What’s…
