James Armstrong
Jun 24 · 3 min read

Facebook’s Libra is NOT a cryptocurrency.

I know big call. But let’s just think about this for a second.
First, though, why would you trust it? Facebook will use it go track what you buy and target you with more of the same. They will not only use your data, but sell it. Or they’ll get hacked and your data stolen.

I mean, their track record, that we KNOW about? Come on.
And you won’t make money off investing in Libra, it’s not going to fluctuate like the cryptocurrencies we know. It’ll be considered a stable coin, 1 for 1.

I’m going to go a step further and call it FIAT.

For all intents and purposes, you might as well consider Facebook a nation, with a population of roughly 2.4 billion, and now with its own currency. It’ll be backed by original investors with USD, EURO, AUD, etc. These original investors or the Association are elitist billionaires. You need $15 million and an invitation. An invitation. Seriously? This is a boys club. A secret society that’s saying, fuck being secret, what are you going to do about it.

And the "unbanked" they are going to help out of the kindness of their heart…….

Right.

And people like you and me, well it’s just another leech attaching to our financial organ to suck it dry.

We will buy it 1:1 probably regardless of currency exchanges, unless they are just blatantly going to suck us dry like exchange booths at airports. Which for me will mean I’ll get roughly 0.7 Libra for my $1. It’ll most likely be matched 1:1 for the USD.

So really, Libra will be fiat. It’ll be a currency for its population.

Oh, and totally centralised. Having those “nodes" at $15 million. Please. If a company starts in the US, but has head offices with servers in other countries, still the same company. But first, Facebook have a lot of hurdles to jump. For one the US Senate with its poor grasp of technology and cryptocurrency in general. That in itself is troubling, but they have a massive fear of losing their monopoly, their power and control. Also a fear of increased money laundering and terrorist funding.

Those first lot of fears, justified, and began a while ago with Bitcoin and the brilliant Satoshi Nakamoto (NOT Craig Wrong)

Those last two fears are justified with Libra.
They want to help the 1.7 million that are unbanked. 
How many are unbanked because they don’t have adequate ID? Or are unbanked because they don’t WANT to be banked? Or, tracked. Either for their fear of governments control of our data. Or their fear of being caught. How many unbanked have a Facebook account, there’s an interesting question.

I’ve met people in Australia and America that don’t have bank accounts. For various reasons. So being unbanked isn’t just a third world, we must help them, situation. It’s also a choice. Either a paranoid choice or a strategic choice.

So yeah, I will not be touching Libra. If, and I feel it’s a big IF its launched at all, in it’s current format, it will be blocked.

Just because try as they might, the world’s governments have not stopped the juggernaut that is Bitcoin, doesn’t mean jack mate.

They can and will stop a business from doing things that give it too much power, or monopoly, or threat to national security.
I call it now, Libra was doomed before it started, back in 2018.
If they’d been smart about it, they’d have started a separate startup crypto, like a XLM, set it up to do what they want Libra to do. Then, big announcement, they just secured a partnership with Facebook to offer their members the ability to blah, blah, blah.

They might have gotten away with that.

    James Armstrong

    Written by

    Writer, Average Aussie, crypto enthusiast, single dad. What I know about crypto I know from doing research and experience. Isn't that what everything is?