Libra Lauded by Trump-Backed Economist
Despite seemingly good intentions, Facebook’s Libra crypto venture has been a polarizing subject. Both in the blockchain community and on the world stage, many have come to either love or hate the proposed digital asset, which is intended to reduce friction in financial services.
Most representatives of governments have taken a wary approach, claiming that Libra may usurp traditional hegemonies. But, one so-called “Trump confidant”, Stephen Moore, an economist, is bullish on the cryptocurrency project. Speaking to Yahoo Finance on Monday morning, Moore, a fellow at The Heritage Foundation, explained that after “studying up on cryptocurrencies”, he has realized that a world where digital assets are heavily utilized “is coming”.
Thus, he notes that Facebook’s latest foray into fintech may be a “good thing”, citing the “balance” on the project. He added that this new project represents a challenge to traditional finance and regulators as a result of its disrupting potential. While he didn’t expound on his points any further, he could be referring to the fact that Libra should push traditional institutions to compete, creating a better environment for consumers at large. He isn’t the only Libra bull, so to speak, near and dear to the United States government.
A representative of Florida’s 9th district, Darren Soto, recently took to Twitter to laud Facebook’s cryptocurrency for its ingenuity and potential to revolutionize finance. He claimed that Libra has the “potential” to be a big step forward when it comes to inclusive, borderless financial infrastructure.
Even Federal Reserve chairman Jerome Powell was somewhat welcoming of Libra, explaining that he is excited by what is going on in the fintech industry, and that he is not worried about digital currencies, be it Libra or Bitcoin, and their role in finance as a whole.
Libra has also elicited some positive responses from the so-called “crypto natives”, executives and commentators in the industry. Circle’s Jeremy Allaire stated that the launch of Libra’s white paper is the transition point where there will be a newfound push for open finance, decentralized platforms, and crypto and blockchain more broadly. Digital Currency Group chief executive, Barry Silbert, went as far as to say that the launch of Libra is cryptocurrency’s “Netscape” moment, whereas this Facebook project will “go down in history as the catalyst that propelled digital assets (including Bitcoin) to mass global consumer adoption”.
Pushback from Crypto Cynics
But, as we have reported previously, Libra hasn’t been left unscathed by regulators. Mark Carney, the Governor of the Bank of England, has pledged that Libra will be heavily scrutinized and regulated, citing the cryptocurrency’s potential to be widely adopted from the get-go.
French Finance Minister Bruno Le Maire followed suit with a similar comment, claiming that under no circumstances should Libra “become a sovereign currency.” Le Maire elaborated that he is worried about how this new digital asset can be used to harvest data, launder money, and finance terrorism:
“This money will allow this company to assemble even more data, which only increases our determination to regulate the internet giants.”
Libra has even received some pushback from mainstream media. CNBC “Squawk Box” panelist and host, Joe Kernen,questioned Libra’s “inherent value”, discussing the fact that it will just be based on the United States Dollar and similar assets in that class. Sounding like a Satoshi Nakamoto excerpt, Kernen went on to add that Libra is a currency for corporations, but Bitcoin is a currency built and used by “the people”.