Libra, the currency that will be created by Facebook, is a commendable initiative. I fully believe that the “coins” of the future will be of private nature and will compete in a market setting.
We can have the Apple’s currency, Google’s currency, Facebook’s currency, Starbuck’s currency. Different means of payment by leveraging their respective database users and competing to bring more convenience to a 100% digital society.
However, we must not forget that ten out of ten times, all these global companies are also subject to the willingness of the politicians, the bureaucrats’ ineptitudes and the resulting anachronism of the laws of each country. The Libra is a ”cryptocurrency” only on the technological aspect, not the philosophical sense of its nature.
The “original” cryptocurrencies, such as Bitcoin or Litecoin, do exist because they are free entry decentralized networks, rather than being controlled by centralized companies. As long as two people are willing to transact bitcoins, the mathematical protocol ensures that the Bitcoin exists. Its very existence does not depend on any given political opinion or permission, whether that´s regulatory or divine.
On the other hand, the currency of Facebook can only exist if it complies with the laws, fitting the politicians’ wills and having the approval of all countries’ bureaucrats where it shall be available. The Libra of Zuckerberg will only exist with the blessing of Governments, and you´ll only be able to hold the currency with the blessings of Facebook. It’s not a network of free entry as it applies to most cryptocurrencies cases.
I hope that Libra is achieved and seen to be a success as well as other initiatives of private currencies. However, I think the challenge to get in compliance with laws and mismatched regulations of various jurisdictions may largely restrict the innovative nature of Facebook’s currency.
