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Nouriel Roubini, an economist and skeptic about cryptocurrency, said that the crypto-currency unveiled soon by Facebook, which would be called GlobalCoin, is not really crypto.
In a conversation with CoinDesk, Roubini – also nicknamed "Dr. Doom "for his prediction of the financial crisis in 2007 and 2008 – said:
"It has nothing to do with the blockchain. Entirely private, controlled, centralized, verified and authorized by a small number of authorized nodes. So, what is crypto or blockchain? No."
Indeed, according to recent reports, the social media giant has reportedly hired more than a dozen lenders for its GlobalCoin cryptocurrency, a stablecoin apparently backed by a basket of fiduciary currencies. Each of the new contributors – which would include Visa, Mastercard, PayPal and Uber – will invest approximately $ 10 million in the project as part of a cryptocurrency governance consortium.
While acknowledging that the details of the project were not yet known (but should be unveiled in a white paper on Tuesday), Mr. Roubini however felt that it was unlikely that GlobalCoin would use common blockchain technologies such as proof of work or proof of compliance. -stake. "Why would they do it?" He said.
And while many members of the cryptographic community have also criticized those who treat Facebook's token encryption as a cryptocurrency, the economist denied sharing common ground with "crypto-faithful".
He told CoinDesk that he had stated publicly that "the DLT business [distributed ledger technology] the blockchain is nominative only … so some faithful crypto can agree on this point. "
Roubini concluded by saying:
"But in my opinion, the blockchain without trust and public is a pipe dream … we disagree on 99% of [the] substance."
Click here to see our comprehensive guide to Facebook's GlobalCoin.
Nouriel Roubini image via Shutterstock
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