Facebook’s announcement yesterday of its plan to enter Cryptocurrency market with its Libra digital token marks its entry into a new product line of financial transactions. The announcement represents an expansion of the shadow banking system, as more and more tech companies enter financial services (Amazon has also become a financial lender). Will you buy your next house from Facebook? Why would Facebook, facing regulatory scrutiny already, enter yet another business that is increasingly coming under central bank regulatory investigation (e.g. all crypto currencies, including Bitcoin)? What’s Facebook’s longer range plan to become a financial services company? Will hackers (of Facebook) now get into your personal transactions and borrowing history? Why setting up a separate subsidiary or locating the development in Switzerland (notorious for opaque finance), will not prevent hackers from accessing your personal transactions or borrowing history! What’s Facebook’s competition in the crypto market (try Tencent in China and Telegram)? Crypto currencies as digital money and threat to central bank money supply control–already in decline and effectiveness, as I’ve argued at length in ‘Central Bankers at the End of Their Ropes’ book.
For my comments on this, check out my recent TV interview.
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Quit Facebook a year ago…after a brief period of withdrawal, don’t miss it a bit. Now Facebook wants to jump on the so-called cryptocurrency bandwagon? Yawn. Another reason to celebrate kissing them good-bye…and another reason to love my credit union membership even more. Good luck, Facebook. May you fall flat on your face and gallantly march into history’s hall of shame!
The way to see this Facebook-Libra thing is to understand the company is joining the ranks of the shadow banking system, which is far more profitable than squeezing out a few more bucks by acquiring this or that add-on app from some third party. Its returns from its current business model can only slow and decline from this point on, so it’s going off into a totally new product line of fintech transactions processing. All this social media stuff is destined to become an appendage of the capitalist surveillance state.
https://kia723.wordpress.com/2019/09/11/how-is-fintech-effecting-other-countries-operations/