The idea of Mark Zuckerberg or any other private citizen being in charge of the money supply should terrify any sensible policymaker or person who uses money. But incredibly, Senator Marion Michael Rounds thinks digital currency stamped “In Facebook We Trust” is a good idea:
Rounds published a letter claiming that “there is promise in cryptocurrencies and digital payments” and that “it is here to stay”.
In spite of mounting regulatory pressure and scrutiny surrounding Libra, he wrote: “I write regarding concerns recently expressed by a number of my colleagues about involvement in the Libra Association. It is profoundly disappointing that my colleagues chose to address your peers in such an ominous tone, which I fear may put a chill on innovation in the long run.”
Our junior Senator also tweeted his love for Zuckerbucks as an expression of free enterprise:
We should be encouraging innovation in cryptocurrency, not discouraging it. Mobile payments and cryptocurrency are here to stay – and have the opportunity to give consumers more & cheaper banking options. #AmericanInnovation #FreeEnterprise https://t.co/EECzMbWkOQ
— Senator Mike Rounds (@SenatorRounds) October 24, 2019
Letting Facebook run our money supply isn’t free enterprise; it’s corporate capture of a basic function of government. Zuckerberg has no intention of providing money that somehow enhances our liberty. Like Trump, Zuckerberg is working for his own interest, not the general welfare. Facebook cryptocurrency isn’t even real cryptocurrency; it’s just one more tool of surveillance capitalism, Facebook’s and Google’s and other big-tech players’ drive to monitor and manipulate our behavior.
France, Italy, and Germany recognize the threat Libra poses to liberty and sovereignty. French Minister of the Economy and Finance Bruno Le Maire explained why he and allies Germany and Italy oppose Facebook money:
He noted that Libra was due to be backed by a basket of currencies and assets, a principal sticking point.
“All Facebook would have to do would be to decide to use more or fewer dollars or euros to affect the exchange rate between the euro and the dollar, and thus have a direct impact on trade, industry and nations which use the dollar or euro as their base currency,” he said.
This could harm monetary policy and affect governments’ efficiency, he added.
“Do we want to put monetary policy in the hands of a private company like Facebook? My answer is clearly no,” he said.
Still, Le Maire said he was not opposed to the creation of a digital currency, which France could develop “in a European framework.”
“The right answer is not a private digital currency under the control of one of the largest multinationals on the planet,” he said, referring to Facebook’s more than two billion users [“European Countries move to Block Facebook’s Libra Digital Currency,” France 24, 2019.10.18].
I’ve tried to clear Facebook out of my mindspace. Now Senator Rounds wants to stick Facebook in our wallets. Maybe we need to join the European Union to protect ourselves from Rounds’s vision of corporatocracy.
Mike Rounds has always been a cyber idiot while rural folks continually think of him as a cyber expert. This phenomena has been really amazing to watch over the years, and it’s just more evidence that rurals can’t learn modern stuff.
Golly. Marion thought EB-5 was a good thing too. What could possibly go wrong??
Isn’t this the same M. M. Rounds that thought Joop Bolen could run monetary issues better than the gov’t? Yah, thought so.
I’ve studied about cryptocurrency and am even a graduate of BitCoin for Dummies classes. The whole idea has a lot of merit and Zuckerberg wouldn’t be able to do those things you hypothesized.
It’s blockchain which actually prevents those things from happening. Obviously Zuck knows what he’s proposing, as his fortune would be the most vulnerable if he was actually in control. He’s worldwide and no doubt sees how a cryptocurrency can help people in underdeveloped countries with few honest and reliable banking options. Not that USA is all that stable under Trump.
For Example … I allow the Hongkong and Shanghai Bank Corp to loan me money. If all goes very badly and Trump cuts off all interaction between us and China, I’d be in a bind to pay back what I owe. That’s where cryptocurrency is useful. It’s nationless, borderless, and controlled by blockchain, which is virtually uncorruptable.
Another Example … It’s common for hackers to get into your Facebook account and send your friends new friend requests in your name. If you accept the request (and most of us have at least once) that let’s hackers into your computer and lets hackers post on Facebook using your name. That’s how the hackers influence elections. By saying things on Facebook that you think came from someone you know and trust. But, the most valuable thing that hackers can gain is a bitcoin wallet account number not secured by two factor authentication or having your bitcoin account in another trusted person’s name, also (where both people have to authorize a withdrawal or deposit). An unsecured wallet is about the only way a bitcoin owner can get robbed. Once a transaction is authorized by the block chain there’s no way to reverse it. And, there’s no law enforcement agency to go after the thief.
– Enough about boring crypto currency. In short, crypto currency isn’t all that bad and it’s very good for other parts of the world.
– Cory, I know you’re vehemently against crypto and we’ve gone round and round about it before. I respect your opinion and appreciate your thoughts on the subject.
How about going back to using the Post Office for banking? Especially in the rural areas and areas that need economic development. When we speak of third world country’s, we should acknowledge that we have vast areas of third world locations. I’m old enough to remember when those Post Offices did a lot of good for small banking and so are many of you as it quit that in 1967.
“Postal Banking is simply the provision of financial services via the Postal Service. The Campaign for Postal Banking is calling for low-cost, consumer-driven products and services that could range from check cashing to bill payment to savings accounts to small-dollar loans. Postal Banking will benefit consumers who do not have access to traditional banks as well as those who would prefer a more public option. Postal services in 139 countries around the world offer some form of financial services. And the expansion of services will also strengthen our public Postal Service. Postal Banking will:
Serve individuals underserved by traditional banks who turn to the expensive and predatory practices of the Alternative Financial Services industry;
Promote an economy that serves the people, not Wall Street; and
Strengthen and protect a vibrant public institution mandated to provide universal and affordable service.”http://www.campaignforpostalbanking.org/know-the-facts/
Using the Postal System banking would Make America Great Again and it would be covered under the FDIC. Booyah!
That’s a good idea, Jerry. Especially since Trump Administration has taken away the regulations and banks can become sellers of high risk, financial products, again. Banks should be depository institutions not investment vehicles, just for the safety of our economy. Too big to fail? BOHICA!
The scummy businesses that like to rip people off don’t want postal banking and those scummy businesses are often financed by big banks. I’m guessing Sen. Warren would go for it anyway, but Congresspeople owned by banks aren’t going to support it. Hence the need for an end to campaigns paid for by corporate bribes. Warren supports that too.
Chubby and EB5 Rounds are all in with Facebook on this, you can tell by the way Facebook is working on the Chubby campaign with the rest of the Russian bots. The payoff for all of the crooks will be huge and untraceable…just like Bitcoin.
Porter, Zuckerberg cannot be trusted. He has flagrantly violated his own promises about privacy in the past. His wealth insulates him from consequences. There is no reason he can’t structure his digital scrip differently from current blockchain protocols to allow himself access to all the data he wants from users.
Cory … Zuck can try to build a compromised system. Few groups are more tech savvy than crypto people and he’d be exposed. However, few groups are more ruthless and pirate-like than crypto people, also.
I agree. Zuckerberg (actually, Sharyl Sandberg) are not to be trusted. His idea of a communication paradigm was corrupted by her greed, years ago. Recently, their decision not to censure lying political ads is still not soaking in to the rational senses of experts.
Sure, Porter, Bitcoin aficionados won’t touch Libra, because it’s not even real cryptocurrency. But does Zuckerberg need that small minority of experts, or does he just need a big chunk of his current less informed customers to hit “Accept” and start using his digital currency to provide all the market share and surveillance/profit opportunity he needs?
Cory. I see what you mean. The criminal Zuckerberg and his evil guru Sharyl Sandberg are cooking up some new scheme. I’d think it’s about creating a tax shelter that only Zuck can control. He’s invested about all he can in Facebook because he’s run out of bandwidth. That’s why all the weird rules like only 30 of a person’s hundreds of friends can see what they post. If everyone could post and see unlimited data the bandwidth would be gone nearly immediately.
Here’s the latest –
VALLEY TALK — “Tech companies gain another foe in Washington: Banks,” by Zach Warmbrodt: “The battle of corporate titans is brewing as technology companies look to disrupt what Facebook’s Mark Zuckerberg calls the ‘stagnant’ financial industry by giving consumers new ways to pay for things and obtain credit.
“Banks are beginning to realize the trend could pose an existential threat, so they’re fighting back with the lobbying clout that they’ve built over decades. Small lenders have urged lawmakers to crack down on Facebook’s plans to offer a new digital currency that would form the basis of a global payments network that could sidestep banks, aligning themselves with liberals like House Financial Services Chairwoman Maxine Waters.” POLITICO
Banks and Auntie Maxine?!? Never expected to see that. Auntie Maxine is smart. If they banks need her, she’s going to expect something from them, support for something that benefits consumers. In addition, I trust her not to support anything that’s going to hurt us. She’s pretty bulletproof because she doesn’t give a damn what people think and she ain’t afraid of nobody!
So banks are afraid they’ll lose their control. I find crypto currencies kinda scary for two reasons:
1. I don’t entirely understand them.
2. They appear to be beyond any control, except, perhaps, the market and the market is fairly ruthless.
But! It’s good for Big Bank’s hegemony to be challenged.
Maxine is bulletproof. I just signed on for Apple Pay. Zuck probably sees that and thinks, “Tim Cook is only half smart. I can make my own and get out front of Congress before they know what hit ‘em. He’s testified enough lately to know what inept clowns run this country.
And Debbo. People like us have no reason to be involved with crypto currency. I learned about it because of curiosity.
Dang: if bankers don’t like it, I might have to revise my opposition. It’s so hard to figure out what to do when the New Establishment is fighting the Old Establishment.
If Chairwoman Waters is good at her job, she’ll say to the banks, “O.K., we’ll play ball, but if you want us to find the votes to shut down Facebook and other folks trying to digitize away your business, you’re going to have to compromise with us, accept a stronger CFPB, and let us authorize the Post Office to offer banking services.”