Co-founder of the Wyoming Blockchain Coalition and a blockchain evangelist, Caitlin Long, recently spoke about Libra, Facebook’s cryptocurrency, during an interview with WhatBitcoinDid. She spoke about whether people would start to use the cryptocurrency extensively, resulting in the devaluation of the local currency owing to a lack of use.
Long stated that Libra’s launch would result in local currencies taking a hit and facing devaluation, if people actually started using the cryptocurrency. The blockchain evangelist further stated that she “suspects” the central banks of developing countries of being “nervous” about Facebook’s own digital currency. However, she stated that the developed world’s central banks “don’t seem to be as nervous.” She stated,
“but this is going to take power away from them […] the optimistic view of cryptocurrencies is that […] there’s not a nation-state here there is a large powerful corporation. […] so it’s powerful in the sense that it does create competition for those local currencies […]”
She further stated that this competition would force central banks to maintain the value of their fiat currencies. This was followed by Long speaking about whether countries would ban the cryptocurrency. She stated that that country could ban the cryptocurrency, adding that this was the risk Mark Zuckerberg was taking with Facebook. She further stated that Facebook getting into the money business could potentially risk a ban of Facebook, WhatsApp, and Instagram.
“Facebook is not usable in China which is why WeChat ended up developing the way that it did. And Facebook obviously gets to see the use that WeChat gets in China is ubiquitous […] and that’s clearly what Facebook is going after here. but I’m sure they’re very aware that in certain countries the dictators are likely to ban Facebook if it becomes too powerful”
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