Uncle Sam is worried. One of Big Brother’s spoiled children is getting a little too big for his britches, and big enough that when you get ready to give him a spanking, there’s a gleam in his eye that says, “bring it on.”
There are rumors floating around that Mark Zuckerberg is a puppet, positioned as the public face of an up and running secret pentagon program, who has no idea how his secret “algorithm” works. Even if they turn out to be totally false, there is enough similarity between Facebook and Project “LifeLog” to raise serious concerns. Now Zuckerberg wants Facebook to have it’s own currency.
Facebook recently announced Libra, their planned digital currency, and it gave government a scare. Why is it scary? It’s new, different, untried and could potentially replace the U.S. dollar.
Treasury Secretary Steven Mnuchin has “very serious concerns,” telling reporters at the White House, “This is indeed a national security issue.”
After the recent “social media summit,” President Donald Trump referred to Libra, tweeting, “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
The only thing American currency is based on, is the “trust” given to it when a potential buyer and seller exchange dollar bills at an equal rate of value. In the infancy of the United States, trade between buyer and seller was accomplished with furs, food, and other items which one person needed, and another one had.
There weren’t any paper dollars until 1792, when the US Congress created them. The U.S. dollar is now a control point and a source of power. According to current fiscal theory, anything or anybody threatening to go outside that should be squashed.
You can almost hear the fear of Libra taking off, since the U.S. dollar is also involved in money laundering, drug and human trafficking and tax evasion.
Bitcoin started the cryptocurrency revolution in 2009 when Satoshi Nakamoto “mined” the genesis coin. The interest in having “unregulated” currency has caused demand to skyrocket in 10 years.
People can do business with it, that makes it valuable. You can be paid in bitcoin and buy things with it. Over 100,000 merchants accept bitcoin, including Amazon through Lightning. Yes, there’s the possibility of it being misused. The U.S. dollar is no stranger to that either, but it’s regulated.
Federal official after federal official on both sides of the aisle, including President Trump, expressed concern, worry and the promise to heavily regulate it — bottle it up if they can — in multiple Congressional hearings. Facebook acts like they are open to the scrutiny and welcome heavy government oversight. The social media giant is banking that Libra will be considered a safe, dependable and low cost way to move money around.
Unlike Bitcoin, Libra is expected to be more stable. It is to be backed by a sovereign international currency, That’s not the same as the gold standard which the U.S. formerly backed the dollar with. One thing it will be useful for is to help millions without bank accounts and allow money to move across borders easier. Coyotes and their clients are especially interested in that aspect.
To address privacy concerns, Facebook assures the public that a number of entities will be closely involved in a non-profit watchdog organization, including PayPal, Uber, Spotify, and VISA/MC.
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Visa, Mastercard, and PayPal, however, are charter members of the Libra Association. PayPal has long been directly associated with Facebook. No there can’t possibly be any conflicts of interest there. Nothing to see, move along. It’s all safe.