Social media giant Facebook has launched the whitepaper of its own cryptocurrency i.e on June 18, 2019. While crypto Twitter is excitedly waiting for the specification of Facebook’s cryptocurrency in its whitepaper, famous economist Nouriel Roubini says it is nothing but a monopoly scam.
GlobalCoin is a Monopoly Scam, Statement Ahead of Whitepaper’s Launch
Nouriel Roubini, who is an American Economist and also a chief executive officer o Roubini Macro Associates – thinks that the Libra is blockchain in name only. On June 17, 2019, Mr. Roubini took to Twitter and expressed his rigid view on Facebook’s cryptocurrency project. He adds that;
It will start as a private, permissioned, not-trustless, centralized oligopolistic members-only club. So much for calling it “blockchain”. Like all “enterprise DLT,” it is blockchain in name only and a monopoly to extract massive seignorage from billions of users. A monopoly scam.
Ahead of this, other reports reveal that Roubini who is also nicknamed as Dr.Doom – says that the project has nothing to do with blockchain & Crypto. He famously is known as Dr.Doom because of his prediction of the financial crash happened in 2017 and 2018. Concerning Facebook’s Libra project, Roubini notes;
“It has nothing to do with blockchain. Fully private, controlled, centralized, verified and authorized by a small number of permissioned nodes. So what is crypto or blockchain about it? None.”
Reportedly, yet to launch a cryptocurrency of Facebook is a stable coin and also latest reports add market players including Mastercard, PayPal and Uber will be investing roughly $10 million in the project – as earlier findings by Coingape reads Facebook was looking for investment to enter into crypto space.
Libra by reports is a project based on the permissioned system whereas bitcoin is a permissionless system, concerning the similar points, Roubini further expressed his view that;
“But in my opinion, public decentralized trustless blockchain is a pipe dream … so we disagree on 99% of [the] substance.”
Besides criticism, it’s true that Facebook is dedicatedly on its way to make it’s Libra project a great success. Not everyone is criticizing Libra/Globalcoin, Alex Gladstein who is the Chief Strategy Officier of Human Resource Foundation ( HRF) organizations explains the key difference between Libra and Bitcoin.
He quotes Barry Silbert’s tweet and said;
Facebook’s Libra is an incremental *evolutionary* build on the current payments system, one step further on the way to endgame WeChat financial surveillance.
Bitcoin is *revolutionary* — a completely new technological path that could preserve financial privacy. https://t.co/hVvn7GkWqQ
— Alex Gladstein (@gladstein) June 15, 2019
Whether or not it makes sense for Facebook’s billion users is a question. Nevertheless, reports made it clear that Facebook intends to serve 1.7 billion unbanked adults with the means of financial services. Ahead of whitepaper launch, Facebook has reportedly launched a website called ‘Calibra.com‘ which is currently down by 404 page not found.
Until now, mixed views of analysts, investors, and big players are creating the buzz around Facebook’s Libra.
Facebook launches much awaited Libra whitepaper
While the community is still in the process to set its foot around the facebook vs bitcoin debate and how the former will affect the crypto market as a whole, Facebook seems to be in hurry to execute its plan. At the time of reporting, Facebook has already launched the whitepaper of its own cryptocurrency. The link to the whitepaper can be found here. Coingape will provide detailed coverage on the whitepaper in a later article today.
For now, let’s see what Facebook has got for the crypto community with its very own stablecoin.
Stay tuned with Coingape to know updates on Facebook’s whitepaper.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com