I can't see why the Fed Chairman Jerome Powell is against Facebook having its own cryptocurrency. Everyone knows the US stock market is driven by the Fed and US Central Bankers. US stocks float higher as Powell prints more money in the basement of the Eccles Building. We are all living in a generation of corporate buybacks and manufactured earnings. Facebook claims it has 2.7 billion people on its social media ecosystem, however I find that hard to believe. In 2019 Facebook saw huge groups of artifical bots creating new accounts and aiding their establishment as a preeminent social network.
Facebook doesn't really care if it has fake bots propping up their user numbers in order to achieve more revenue from corporate America. Their whole philosophy in terms of advertising is quantified by their total outreach. Facebook's mathematical theorems are a systemic lie to all advertisers.
Take for example Facebook's Libra project. As money evolves, cryptocurrencies always seemed like an inevitable prophecy just waiting to arrive. However with the 2008 global credit crisis, the arrival of cryptocurrencies accelerated much more rapidly. Facebook's goal of their Libra Blockchain becoming a decentralized network is simply untruthful. This is because Libra was designed to be launched in 2020 as a centralized system where billions of transactions will be administered by 28 nodes, each being a member of the Libra Association.
Facebook argues that the total quantity of validators will reach 100 and each of these would represent an equal share of voting rights. Yes, this does seem like an upgrade from the current of Board of Governors of the Federal Reserve System as not all of these twelve Federal Reserve Banks have equal voting rights. The Fed Chairman and president of the Bank of New York do. However with all the white noise aside, Bitcoin and other cryoptocurrencies represent dangerous and extreme volaility which is why a single currency hasn't emerged as the frontrunner. The goal of cryptocurrency in terms of improving everyday life through the enablement of easier transfer of money between individuals and businesses and purchasing desired services and products instantaneously along with the elimination of high transaction costs has simply not come into fruition. Libra seems to posess the key components in becoming a viable alternative to the US dollar, but will face strict resistantce from the Fed and the ECB.
I have to give credit to Mark Zuckerberg; he understands that Bitcoin is not a investable currency because of its volatility. Mark wants his cryptocurrency backed by assets which etablish less volatility but increased volumes with respect to his valued investors. Mark and his Facebook followers are establishing fiat currency at a higher price with the technological variability and monetary policy similar to that of the Fed.
It really doesn't matter if Facebook claims that their Libra blockchain is a decentralized peer-to-peer electronic cash system. What they are offering is something novel in the sense that they do not have a trusted third party handling the transactions. They opted for governance of their transactions through the Libra Association represetend by the 28 founding members from large corporate firms in the US including Facebook, Calibra, eBay, PayPal, MasterCard, and Visa. What Facebook has that the Fed doesn't have is the third-world countries and the multidude of individuals who are paying higher service charges to their banks looking for an alternative.
Anyone with Libra will possess a higher degree of assurance that they can convert their digital currency into local fiat currency based on respective exchange rates, similar to the current process of exchanging one currency for another while traveling. The goal is to establish trust in a new currency and foster widespread adoption during its infancy and to guarantee that a country's fiat currency could be exchanged into real assets.
The assets constituing Libra are the real differentiator between itself and competitors like Bitcoin who lack instrinsic value and consequently experience large price fluctuations determined by expectations and news. The Asia Pacific region is the largest contingency with respect to cryptocurrency. Most of the population lacks creditworthiness and financial assets, however they are a proven workforce that commands wages that Libra and Facebook can profit from. The Libra coins are only burned when authorized resellers sell Libra back to the association in exchange for underlying assets.
The corporation of the global followers of Libra are there to develop and build the banking services to spur the global adoption of Libra. Their main goal is not charitable; it's to achieve profits and accelerate behavioral spending among consumers. Facebook can sell that any time of the day to achieve enormous profits and to amass billions of dollars from the third world that are not willing to give to their own banks. If Facebook's cryptocurrency, Libra, passes through regulatory approval they will constantly manipulate the currency to go higher than the American Dollar. The Fed prints money because they want the stock market to go up and no one to profit from it. That is the new age that we live in today, but then again eventually the American hedge funds will profit from the average citizen and beat out the taxi driver. Eventually Amazon and Apple will follow suit, after all it's a license to print money, no different than what the Fed is doing now.