by Shah Gilani, Money Morning
Special report from Money Morning
This won’t take long.
That’s because the real reason Facebook’s Libra, Mark Zuckerberg’s would-be world dominating cryptocurrency, won’t get off the ground isn’t because of what any of its detractors are saying about it.
And, they sure are hammering it from every angle..
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The real reason Libra will never be what it could be is that it could replace central banks’ lucrative fiat currency, fractional reserve magic money grand scheme.
Here’s what everyone’s saying and the real reason Libra is being killed in its cradle…..
What Happens When Facebook Takes on the Federal Reserve
Mark Zuckerberg, for all his money and supposed smarts, blew it with the introduction of Libra.
The genius idea could have and probably would have worked if Zuckerberg launched it a lot sooner.
Ideally Libra should have come out immediately on the heels of the launch of Bitcoin. But not more than three years after Bitcoin launched, which would have been when Facebook went public in 2012.
Bitcoin was never going to become huge. It was always a speculative block-chain fantasy.
That’s why it was allowed to exist.
Regulators, most importantly the Federal Reserve, knew Bitcoin’s price would fluctuate.
That’s because they knew its price was based on supply and demand and the whacky “mining” creation of “coins,” ultimately leading to a limited supply of the cryptocurrency, even if it was all mined up.
A “currency” created that way simply couldn’t grow infinitely. Plus, its value could fluctuate radically on any given day or intraday.
Ultimately it would be a speculative novelty and never threaten anybody’s payment system, any bank, or any central bank’s control over what really matters: real fiat money.
Because Bitcoin was allowed to exist, based on the idea of block chain being the future of things, Facebook should have piggybacked it.
Facebook could have created some kind of “rewards” cryptocurrency based on platform usage or apps and services that could be purchased through Facebook.
It would have been rough, and they should have entered the arena in a non-threatening way.
Since Bitcoin was allowed to exist, a Facebook beginner cryptocurrency would have been hard to argue against.
It could have had a chance.
But they blew it.
Now all the hammering over privacy issues and the shady testimonies by Zucks and his minions in front of Congress is strangling the launch of a Facebook cryptocurrency
And that’s good for the Federal Reserve and banks. They’re cheering on all the detractors.
If Facebook, with some 2.4 billion total users and something like a billion daily-users, had a cryptocurrency that its users used, the banking system as we know it would be threatened like never before.
Of course, that’s never going to happen.
Ultimately the Federal Reserve as the most powerful institution the world has ever seen would use its government lackies to kill it before it can crawl.
So, enjoy all the hammering Facebook’s getting, just don’t lose sight of the real reality.
The Federal Reserve owns America’s currency and they will never, ever, allow a competing currency to steal the profits its banking constituents make off Federal Reserve Notes, fiat money, and the whole fractional reserve pyramid scheme.
NEVER.
.
