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Facebook’s Libra will destroy all stablecoins, but who gives a f***, remarks BitMEX’s Arthur Hayes




Libra will destroy all stablecoins, but who gives a f***
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“Libra is not a cryptocurrency. Libra will destroy all stablecoins, but who gives a f*ck. I shed no tears for all those projects that somehow believed there was value in an unheard-of sponsor creating a fiat money market fund that rode on a blockchain,” remarked Arthur Hayes in this month’s BitMEX Crypto Trader Digest.

Libra, the cryptocurrency launched by the social media giant – Facebook, has been grabbing the attention of banks, regulatory authorities and tech firms around the world. However, the coin has been through a tough start as it has been not only been criticized by notable figures in the cryptocurrency space, but also in the regulatory space. The CEO of BitMEX has been the latest in the cryptocurrency space to opine on Facebook’s venture into the digital space.

Arthur Hayes said,

“Libra could lay commercial banks and central banks low. It might reduce their usefulness to a dumb regulated warehouse for digital fiat money. And that is exactly what should happen to these institutions in a digital age.”

In the digest, the CEO briefly explains Libra and also addresses the most asked question related to it, privacy. Hayes stated that even though the digital currency does not “connect real-world identities to addresses,” it will definitely have a know-your-customer [KYC] process. He also emphasized that the social media giant will undoubtedly submit to government agencies’ request of freezing transactions, suggesting users to “not use Libra to buy your mood-altering substance(s) of choice.”

Further, Hayes spoke about the coin’s use-case, where he implied that Libra could provide financial services to countries where there was low financial services penetration, like the Philippines. This was in light of the fact that most users of the social media platform hail from places where there are banking/financial problems.

“Commercial banks: Any bank should be on notice, Libra and its clones are existential threats to their business models. Many will cheer as banks’ profit centers are eviscerated. But maybe society is trading one devil for another.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.