Libra Currency – A Serious Threat to Global Banking System?
Facebook's Libra cryptocurrency may pose serious risks to global banking' and this move could affect competition and data privacy.
Payments are complex and there is a huge need for supervision and regulation. Especially, when things start to get challenging or when they go wrong. Our work, involves helping companies to do the right things, so we know just how tough this can be for every company, irrespective of experience.
So, we should all agree with Donald Trump (a shudder here), and for a couple of key reasons we must all make sure that payments and Banking are performed correctly and legally and appropriately licensed and to properly governed organisations to avoid:
A. An 'Idiocracy' future – with Facebook et. al.
B. The Tax / Government issues
The companies behind Libra, that form the Libra Association , are giants in their own industries . They wipe-out competitors, and direct our lives with their products/ services. As citizens, are we happy for this Facebook-led association of big business to develop and deploy a crypto-currency using blockchain distributed ledger for its rails. Do we want them to harvest all of our shopping and payments information. Do we want them to collect more 'lifestyle data', which they will inevitably sell to others with or without our permission?
We know who run these 'Libra' companies, but should we worry that they have complex global corporate structures that collect, lose, sell, and abuse our data today, avoid paying taxes, and evade government enquiries. Even this month, Facebook was fined $5billion. But it took years and cost multiple $millions to do.
We should worry also that the initial Libra documentation shows a big intention to control, maybe even to 'own' our 'identities'.
The Tax / Government Issues
We can all dislike taxes, but:
- They are necessary to pay for welfare, social, health service, community, law enforcement etc. But also to watch over and regulate businesses.
- Taxation also comes from corporates including from Banks and other regulated businesses.
- The tax affairs of the Libra 'gang' are very nefarious and hidden in the most tax efficient jurisdictions.
- Regulation also requires companies to have capital, to safeguard money and look after 'people', to have an ombudsmen and compensation schemes…… and much more.
We should also worry about:
a) A move towards single global payments and currencies. Would this be linked to say the USD / USA? (Where is Facebook? How do you complain? Will you get an answer?)
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Page Updated Last on: Jul 28, 2019