The " Libra " Threat !

How do you feel about paying your bills with the Libra  ?   That's what Facebook intends to call its new currency when it launches it on the world.  It is unlikely to take the form of actual banknotes and will exist in crypto form as a digital currency with control outside the hands of the government agencies that regulate the existing money supply.

Of course, if you want to pay bills with the Libra you will first need to own some of the stuff and that raises the interesting question about its value.  How many Australian dollar notes do you shell out to obtain an equal number of Libra credits  ?   And who decides the exchange rate when the Libra is used to buy from a third world country with a lousy credit rating  ?

Facebook claims that it has the ability to move money across the globe more quickly and cheaply than the traditional money system.   We would be wise to look at Facebook's track record and remember the motto of it's founder to " move fast and break things ".   Facebook certainly broke things in the news cycle with its " fake news " components and this progressed to the point that it began to deliver unexpected election results.  We have reached the stage where a lot of people believe what they see on Facebook more than what they watch on the nightly news or read in a newspaper.

Creating a new world currency is an enormous task and obviously Facebook thinks it has the spread of users to achieve success.  What is frightening is the prospect of the people who run Facebook getting their hands on a power for which they have absolutely no experience.  The Facebook way was to solve problems as and when they arose.  That could be disastrous when a new system seeks to replace the carefully orchestrated system of payments that underpins world trade.

We have only to look at the track record of BitCoin to see the amazing highs and lows that experienced without adequate control measures.  The Libra is a step into the unknown and it has the ability to seriously financially hurt a vast number of people across the world.  The problem is that Facebook users may welcome it enthusiastically.  It has the capacity to quickly become a rogue currency and spin out of control.

It has been the extraordinary success of the Facebook concept that is now causing the Facebook movement to seriously consider taking on the money supply.  There is also a high degree of arrogance that has resulted in the misuse of user information data.  This misuse has resulted in Facebook receiving a $7.1 billion fine from the US Federal Trade Commission, which is indicative of the wealth that Facebook is generating.

Back in the 1700's it was the era of the " robber barons " who amassed fortunes with few government controls.  Facebook is a new concept that simply eludes most control measures because of the innovative nature of how it prersents.  This move into Facebook currency takes it to new highs and brings the danger that if it is mishandled it could destroy the carefully managed financial system on which world trade depends.

Facebook users should think long and hard before they adopt the Libra  !