Hughes: “Libra could lead power to the wrong hands”
The co-founder of Facebook expressed his opinio with respect to the creation of the cryptocurrency by the social network
The businessman Chris Hughes, one of the co-founders of Facebook with Mark Zuckerberg, has warned that the creation of a cryptocurrency by the social network will imply putting power “in the wrong hands“.
“This currency will insert a corporate layer in monetary control, located between central banks and individuals, and these companies will inevitably put their private interests, profits and influence above public ones.”
Libra, the criptodivisa announced by Facebook this week, will be managed by an association based in Switzerland of which a total of 28 private companies already form part. These include MasterCard, PayPal, Visa, Uber or Vodafone, as well as venture capital funds Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital and Union Square Ventures.
Hughes’ criticism also focuses on the fact that the assets and deposits that support the value of Libra will be denominated in euros and dollars, which will reduce the power of central banks in emerging markets and developing countries.
“If many people leave their local currency, it could threaten the ability of emerging market governments to control their money supply, exchange rates and, in some cases, the possibility of establishing capital controls,” underlined the co-founder of the American social network.
K. Tovar
Source: LaVanguardia
