The well-known Bitcoin hater, Nouriel Roubini – AKA Dr Doom – seems to have moved on from the leading cryptocurrency as he is now aiming his hate towards Facebook’s upcoming cryptocurrency, Libra. Following the announcement of the upcoming stablecoin, Roubini said that Libra is blockchain “blockchain in name only”.
On top of this, the New York University economics professor argued that Facebook’s cryptocurrency was only designed as a money grabber for the social network to up profits. He goes on to say that Libra is a “monopoly scam” given that Facebook has billions of users all across the world.
Responding to a tweet from CoinDesk, Dr Doom said:
“It will start as a private, permissioned, not-trustless, centralized oligopolistic members-only club. So much for calling it “blockchain”. Like all “enterprise DLT” it is blockchain in name only and an monopoly to extract massive seignorage from billions of users. A monopoly scam”.
In another tweet, the economist warned of Facebook “ridiculous chutzpah” designs. According to him, the social network intends to use Libra to become the central bank of the whole world.
In a tweet from last month, Roubini said:
“At a time when Big Tech is coming under sharp legislative scrutiny coz of serious anti-trust concerns and all govs, even the US, want to crack down on these monopolies Facebook wants to become the monopolistic Global Fed without even a bank license. What a ridiculous chutzpah!”
Before claiming that Facebook was a ‘monopoly scam’ or ‘ridiculous chutzpah’, Dr Doom warned of the risk factor associated with Facebook’s cryptocurrency. Potential users of Libra from the United States might be turned off by a cryptocurrency that’s also linked to relatively unstable currencies from emerging markets, as an example.
“Also as FB Coin linked to a basket of currencies there is significant currency risk for users whose main currency is dollar or euro or any other. Most consumers are local and think/pay local and dont want currency risk related to using a coin that is a basket of global currencies”.
So will Facebook’s Libra coin just be a cash cow or will it be a respectful project with real long-term goals? Only time will tell but hopefully, it will be the latter. Not only would it bring in some well-needed legitimacy to an emerging industry but it could see an influx of more enthusiasts and investment.