Send a Tweet
Most Popular Choices
Poll Analyses
Share on Facebook 31 Share on Twitter 4 Printer Friendly Page More Sharing
OpEdNews Op Eds    H1'ed 6/26/19

Facebook May Pose a Greater Danger Than Wall Street

By       (Page 1 of 4 pages) (View How Many People Read This)   3 comments
Author 7471
Follow Me on Twitter     Message Ellen Brown
Become a Fan
  (212 fans)

From Truthdig

Facebook CEO Mark Zuckerberg speaks at a 2014 San Francisco event in front of a screen showing one of the tech giant's early mottos,
Facebook CEO Mark Zuckerberg speaks at a 2014 San Francisco event in front of a screen showing one of the tech giant's early mottos, 'Move Fast and Break Things.'
(Image by (Mike Deeroski / Flickr)(CC BY 2.0))
  Details   DMCA

Payments can happen cheaply and easily without banks or credit card companies, as has already been demonstrated -- not in the United States but in China. Unlike in the U.S., where numerous firms feast on fees from handling and processing payments, in China most money flows through mobile phones nearly for free. In 2018 these cashless payments totaled a whopping $41.5 trillion; and 90% were through Alipay and WeChat Pay, a pair of digital ecosystems that blend social media, commerce and banking. According to a 2018 article in Bloomberg titled "Why China's Payment Apps Give U.S. Bankers Nightmares":

"The nightmare for the U.S. financial industry is that a technology company -- whether from China or a homegrown juggernaut such as Amazon.com Inc. or Facebook Inc. -- replicates the success of Alipay and WeChat in America. The stakes are enormous, potentially carving away billions of dollars in annual revenue from major banks and other firms."

That threat may now be materializing. On June 18, Facebook unveiled a white paper outlining ambitious plans to create a new global cryptocurrency called Libra, to be launched in 2020. Facebook reportedly has high hopes that Libra will become the foundation for a new financial system free of control by Wall Street power brokers and central banks.

But apparently Libra will not be competing with Visa or Mastercard. In fact, the Libra Association lists those two giants among its 28 soon-to-be founding members. Others include Paypal, Stripe, Uber, Lyft and eBay. Facebook has reportedly courted dozens of financial institutions and other tech companies to join the Libra Association, an independent foundation that will contribute capital and help govern the digital currency. Entry barriers are high, with each founding member paying a minimum of $10 million to join. This gives them one vote (or 1% of the total vote, whichever is larger) "in the Libra Association council. Members are also entitled to a share proportionate to their investment of the dividends earned from interest on the Libra reserve -- the money that users will pay to acquire the Libra currency.

Needless to say, all of this has raised some eyebrows, among both financial analysts and crypto-activists. A Zero Hedge commentator calls Libra "Facebook's Crypto Trojan Rabbit." An article in The Financial Times' Alphaville calls it "Blockchain, but Without the Blocks or Chain." Economist Nouriel Roubini concurs, tweeting:

Nouriel Roubini ✔ @Nouriel

It will start as a private, permissioned, not-trustless, centralized oligopolistic members-only club. So much for calling it "blockchain." Like all "enterprise DLT" it is blockchain in name only and an monopoly to extract massive seignorage from billions of users. A monopoly scam https:// twitter.com/coindesk/statu s/1140620454262124545 "

Next Page  1  |  2  |  3  |  4

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

 

Well Said 4   Supported 4   Valuable 4  
Rate It | View Ratings

Ellen Brown Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling WEB OF DEBT. In THE PUBLIC BANK SOLUTION, her latest book, she explores successful public banking models historically and (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

It's the Derivatives, Stupid! Why Fannie, Freddie and AIG Had to Be Bailed Out

Mysterious Prison Buses in the Desert

LANDMARK DECISION PROMISES MASSIVE RELIEF FOR HOMEOWNERS AND TROUBLE FOR BANKS

Libya: All About Oil, or All About Central Banking?

Borrowing from Peter to Pay Paul: The Wall Street Ponzi Scheme Called Fractional Reserve Banking

"Oops, We Meant $7 TRILLION!" What Hank and Ben Are Up to and How They Plan to Pay for It All

To View Comments or Join the Conversation: