Facebook is dangerous and really arrogant to launch Libra currency

US Banking Senate Commitee held a hearing on Facebook’s Libra currency on 16 July 2019.

Ranking Member Sherrod Brown in the Opening Statement says:

Facebook is dangerous. 

Now, Facebook might not intend to be dangerous – but they certainly don’t respect the power of the technologies they are playing with. Like a toddler who has gotten his hands on a book of matches, Facebook has burned down the house over and over, and called every arson a learning experience. Facebook has two competing missions – make the world more open and connected, and make a lot of money. And as Facebook attempts to serve both of those missions, they wreak havoc on the rest of us.

Ouch. Further:

Facebook has demonstrated, through scandal after scandal, that it does not deserve our trust, and that it should be treated like the
profit-seeking corporation it is, just like any other company. He and his executives have proven over and over that they don’t
understand governing or accountability.

They’re not running a government, they’re running a for-profit laboratory. No Facebook executives have been harmed by
Facebook’s experiments. But look at what has happened everywhere that Facebook has run its social experiment on us.

Their motto has been “move fast and break things.” And they certainly have. 

They moved fast and broke our political discourse, they broke journalism, they helped incite a genocide, and they’re undermining our democracy.

More ouch!

On Libra:

Now Facebook is asking people to trust them with their hardearned paychecks. It takes a breathtaking amount of arrogance to look at that track record and think, you know what we really ought to do next? Let’s run our own bank and our own for-profit version of the Federal Reserve for the world.

I understand that given the financial crisis and given the massive inequality and unfairness to workers in our economy, it’s
tempting to think anyone could do a better job than the Wall Street megabanks.

But the last thing we need is to concentrate even more power in huge corporations.

Look at Facebook’s record. We would be crazy to give them a chance to experiment with people’s bank accounts, and to use powerful tools they don’t understand, like monetary policy, to jeopardize hardworking Americans’ ability to provide for their families. 

This is a recipe for more corporate power over markets and consumers, and fewer and fewer protections for ordinary people.
Thank you, Mr. Chairman, for holding this hearing. 

Phew.

Though, some would argue that government and Federal Reserve’s own record on monetary policy has been terrible. This is what is leading to all these experiments at the first place.

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