The head of Facebook’s Libra says he’d love somebody with central banking experience to help lead it

Note: I have no opinion on these matters, at least to my analysis. If I were to establish a monetary system on a blockchain, I would establish a working rapport with the governing authorities. I certainly would not try to overturn the status quo (at least, not initially). So far, Libra has shown an aversion to relying on the large commercial banks, as their overt involvement would make many of Libra’s prospective users uncomfortable.

Decentralized currencies will not be allowed to replace the dollar
  • The latest price moves of btc show that it can never replace the current fiat transaction currencies for 90% of the population. Only stable coins will encourage spending, not speculation and hoarding.
  • David Marcus, the head of Facebook’s blockchain project, said he wants “someone who knows how economies tend to work” to lead the Libra Association.
  • Executives at Facebook’s Libra are taking the correct approach by soliciting its desire to work with the central banks.
  • Bitcoin can become the go-to for asset protection and its price may rise many fold from current levels, but its current structure preclude it ever being more than an asset.
  • Scarcity can never be an attribute for a proposed monetary system. The elites will never allow that.

“We need someone who knows how economies tend to work, who understands how to operate in a very complex, decentralized governance type of environment,” [David] Marcus told The Information in a Q&A published on Friday.

“And we need someone who has the gravitas to be able to carry the message on behalf of all the members — the hundred members and more of the association when this thing goes live — rather than have each and every one of us have piecemeal conversations left and right with all of the different governments and regulators that this whole network will be subject to.”

The executive in charge of Facebook’s currency says he’d love somebody with central banking experience to help lead it – CNBC, June 28th

David Marcus, the Facebook exec who helped hatch its Libra digital currency project, said a managing director with experience in government and central banking would be a great leader for the independent group that will actually oversee the currency.

As I stated previously, I believe that the major western governments and their network of central banks will ultimately have a say in Libra’s formation and may have already guided Facebook on how to approach its blockchain creation. It will ultimately win approval in some modified version. Libra is nothing more than a sovereign debt buying scheme and the average user is the ultimate buyer of that debt. It would make an effective global-based transaction currency that could theoretically replace the dollar.

Commercial banks will be involved, but they need to remain arms-length or risk impropriety

In his Q&A, Marcus also denied a Tuesday New York Times report that banks like Goldman Sachs and JPMorgan Chase had rejected Facebook’s invitation to join the Libra Association.

“I want to absolutely and strongly deny the fact that we’ve approached banks and banks have said no,” Marcus said. “We have had conversations with banks. We still have conversations with banks. And my expectation is that by the time this thing launches next year you will have banks that are going to be members of this.”

The executive in charge of Facebook’s currency says he’d love somebody with central banking experience to help lead it – CNBC, June 28th

I find all the conversation around Libra and its proposed association with the large money center banks interesting. I believe it all to be a red herring as the Libra association cannot overtly rely on commercial bank involvement. Goldman and JPM both see a huge opportunity to move the monetary system in a new, more profitable, direction. But they cannot come out as supporters now, since it would sully the Libra coin. Overt support of the large banks could jeopardize Libra’s popularity with its users.

It’s my conclusion that the executives at Libra are currently taking the right actions and saying the right things to make certain Libra becomes a powerful global transaction-based monetary system in the future. I am certain that Facebook has been working behind the scenes with the elites and these authorities have most likely been the ones who came up with the idea of Libra in the first place. It’s all part of the new world order. I see it all as a fait accompli.

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