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Facebook Co-founder Shouts at Libra Coin Citing Centralization Issue

Facebook co-founder Chris Hughes who has fallen in criticism for Facebook since few days – is again shouting at Facebook’s entry into the crypto world. He termed Facebook’s Libra coin as ‘Frightening’ on June 21, 2019.

Libra is “Frightening” – Facebook Co-founder

The new digital currency, Libra is absolutely on trend these days – as the currency is backed by the billion-user base company Facebook. But as always, there will be two sides of a coin. As such, Facebook’s co-founder, Chris Hughes seems not an adherent of Libra’s launch. In a series of tweet on Friday, June 21, 2019, Mark Hughes explained that regulators should approach the Facebook move with “exhaustive” scrutiny.

Chris Hughes is the same fellow of Mark Zuckerberg, who earlier released an article on The New York Times, urging ‘It is Time to Break Up Facebook”. However, there has been an indirect talk between Huges and Zuckerberg on break up for Facebook but Hughes again spoke harshly about Facebook and this time on Libra. He publicly termed it as ‘frightening”. Below goes his series of Tweets;

1. #Libra has a long way to go before being successful, but in theory, it’s brilliant and frightening. At the start of the week, I thought the problem would be that it would reinforce Facebook’s corporate power.

2. Now, a few days out, I think the problem is different and bigger: a new layer of monetary control between central banks and individuals, mediated by corporations.

3. What Libra backers are calling “decentralization” is in truth a shift of power away from developing world central banks and toward multinational corporations and the central banks of the largest economies.

4. If #Libra is successful, the problem will be bigger than more power for Facebook. We’ll have to answer whether we want a global currency managed by (mostly) for-profit, private companies or public ones.

Libra Coin Would Shift Power in Wrong Hands

Hughes’s thoughts on Libra is more concerned at the centralization and the power shift. In fact, he thinks, Libra to get succeed in the crypto industry and even if ‘modestly successful’, Facebook’s Libra would have transferred the power from Central banks to private companies that Facebook has already tied up for Libra –which includes, Uber, Visa, Vodafone and so on. he states;

If global regulators don’t act now, it could very soon be too late.

Moreover, he continued claiming that Facebook and large corporate partners have smartly limited a single vote on the commission. Explaining that he says, he has been a cryptocurrency skeptic but the matter of Libra is different – since it is a stable coin. Huges notes that;

Vital decisions about Libra’s administration, security, and underlying assets will be made by the Switzerland-based Libra Association — essentially Facebook and its largely corporate partners, He adds. That doesn’t make the prospect of Libra’s success any less frightening.

So readers, what’s your take on Chris Hughes’s opinion on Facebook’s Libra.? Do you agree or do you think Hughes is just on the other side.? Let us know in the comment below

Image Source – CNBC

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