Libra’s effect on fiat currencies fueling government’s fears: Mark Yusko
Facebook has been the talk of the town after it announced its cryptocurrency project, Libra. While many are skeptical of the project, several others remain bullish about the opportunities afforded by Libra. Mark Yusko, Founder and CEO of Morgan Creek Digital, revealed his position on Facebook’s cryptocurrency project in a recent interview.
Yusko highlighted the fact that people primarily need to get familiar with blockchain technology. The triple entry accounting that allows users to exchange value on a peer-to-peer network eliminates the need for a middleman, he added. The traditional financial system has taken charge of the transfer and safekeeping of value since the 1400s. However, people will realize that with Libra, they can convert fiat to a cryptocurrency by using the Facebook network without the need to possess a bank account.
He went on to say,
“One of the great things about Libra is the idea that the people who don’t have bank accounts, but do have mobile phones, do have Facebook accounts, can suddenly do mobile commerce using Libra token as a medium of exchange.”
Further, Yusko suggested that Libra is initiating the “step function from the analog age, the electronic age on to the digital age.”
Yusko also believes that the government is opposing the project as they fear that Libra could impact fiat currencies, further pushing deposits out of traditional financial systems. He said,
“And I think those traditional financial system institutions like the banks are putting a lot of pressure on Congress and other places to fight back.”
Addressing technological innovation and how the same is accepted by the world, Yusko said,
“So I think we’re at the very nexus of a huge power shift as we go truly global and borderless around the world and the digital age.”
Yusko concluded by claiming that the success of U.S-born platforms like Facebook, Amazon, and Google are an example of flexible and successful technological policies; policies that the United States should pursue in the present-day with respect to the cryptocurrency and Fintech market.