Billionaire tech entrepreneur Mark Cuban is not a big fan of Facebook's recently-detailed type cryptocurrency. According to him, the despotic rulers of the whole world could have repercussions if the citizens started to use alternatives to the national currencies.
Cuban joins an increasingly vocal group of regulators, bankers and other organizations concerned about the financial giant's financial ambitions and their implications.
Cuban: Facebook cryptocurrency could be dangerous in authoritarian nations
According to a report on CNBC, technology entrepreneur Mark Cuban does not like what Facebook says in his words regarding his "cryptocurrency" offering. He declares:
"I'm not a big fan of what they do there … I think that's a big mistake."
Trump slams Bitcoin into a tweet saying that he's "not a fan". and Mark Cuban informs CNBC that Libra is a "big mistake" on Facebook
– Squawk on the street (@SquawkStreet) July 12, 2019
Rather than focusing on the potential regulatory nightmare that Libra is likely to be, as many others have already done, Cuban rather considers the social and political implications of Libra.
Last month, Facebook said it hoped that Libra would be used to promote economic freedom in areas of the world where currency devaluation and lack of banking infrastructure are extreme. However, the technology entrepreneur recognizes that these countries also tend to be those with the most despotic governments. He does not think that such authoritarian regimes will cautiously accept the use by citizens of the cryptocurrency of the social media company:
"I think globally and in countries where there is not a lot of rule of law, stability of government or currency, it could be dangerous … There will be a despot in an African country that is not safe. are upset that they can no longer control their currency and that it is there that the real problems begin to arise. "
Cuban is far from a single voice to express his concerns about Libra. The investor "Shark Tank" and the owner of Dallas Mavericks join, among others, the chairman of the Federal Reserve, Jerome Powell, the French government and the governor of the Bank of England, Mark Carney. However, the most prominent critic of digital currency may be President Trump. The US head of state said via Twitter yesterday that he had problems with Bitcoin and Libra.
Trump wrote that if Facebook wants to offer banking services, it will be obliged to comply with all the necessary regulations that banks currently apply.
In the same way, the "virtual currency" of Facebook Balance will have little impact or reliability. If Facebook and other companies wish to become a bank, they must look for a new bank charter and be subject to all banking regulations, just like other banks, national …
– Donald J. Trump (@realDonaldTrump) July 12, 2019
In the following tweet in his thread, Trump says:
"In the United States, we have only one real currency, and it is stronger than ever, both reliable and reliable. It is by far the most dominant motto in the world and will always remain so. That's what is called the US dollar!
In the cryptocurrency sector, news from Libya has been welcomed more favorably. Many analysts have argued that since Libra is backed by fiduciary money and is expected to remain stable, it would face the fiduciary motto rather than Bitcoin.
Others claim that the social media company's projects will make it easier than ever to move from the use of fiat money to a digital asset such as Bitcoin. The first discussions between the giant cryptocurrency exchanges, Binance and Facebook, indicate that the process of integrating new users could indeed become easier once Libra will be listed.
Related reading: Why do Winklevoss twins endorse Libra as crypto despite worries
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