Money is making the world go, but not the way it used to go. Simple, expensive, inefficient and built on old technology and economic thinking, the world currency structure of today is a drain on the world economy. An ambitious strategy should be warmly welcomed to reshape the world of currencies and expenses.
Yet no one in the U.S. In October, the House Financial Services Committee also wanted to hear the testimony from Facebook Inc. chief executive Mark Zuckerberg on his proposal to break up the global money system with a modern, proprietary currency.
Alternatively, he had to cope with the usual grandstanding politicians whose primary goal was to make the head of the US$ 70-billion tech giant grovel from their power soapboxes in the committee room. But it is worth another dig at his opening remarks.
As we sit here, there are more than a billion people worldwide who do not have a bank account but could use mobile phones if there was the right system
Facebook CEO Mark Zuckerberg "When we sit here, there's more than a billion people worldwide who don't have a bank account but could use mobile phones if the right system existed," Zuckerberg said about Facebook's proposal to lead a band of tech companies — including Uber Technologies Inc., Spotify Technology SA and Vodaphone Group PLC — to create a new currency, a "stablecoin" call.
Zuckerberg's outline of the Libra plan was drowned out in the hours that followed by pontifying U.S. politicians who monopolized media coverage that continued to caricature Facebook as an unreliable lawbreaker and suppressor of fundamental rights. Facebook, chairwoman of the House Committee Maxine Waters said, should be split rather than extending into something as important as money.
But the remarks of Zuckerberg include some of the key rationals for a currency plan that shook the pillars of the government-controlled international monetary system, ranging from central bankers to finance ministers and corporate bank CEOs to leading scholars.
Two major broad themes emerged in the end. One is an acknowledgement of Zuckerberg's intro argument that the system for moving money around is "stagnant." It is generally accepted, even among Libra detractors, that the current public system of currency values, banks, organizations, and financial institutions provides a risky, ineffective service that needs radical reform.
The "deficiencies" of the international monetary and financial system have become "progressively strong," as Bank of England Chair Mark Carney put it in a post-Libra speech in August. It struggles from "malign neglect" to the extent that "even a passing acquaintance with economic history indicates that this framework will not survive."
Tags : Facebook, currency transition, Financial Services Committee,