Mark Cuban, a billionaire entrepreneur and the owner of Dallas Mavericks basketball team calls Libra, Facebook’s recently announced stablecoin a big mistake.
During an interview with CNBC published on July 12, Cuban shared his opinion about the social media giant’s cryptocurrency endeavors. He stated:
“I’m not a big fan of what they’re doing there. […] I think it’s a big mistake.”
Cuban went on to explain that he fears Libra’s global impact more than its impact on the United States. As per the report, he notes that “globally and in countries where there isn’t a lot of rule of law, or a lot of government stability, or currency stability, then it could be dangerous.” He adds:
“There’s going to be some despot in some African country that gets really upset that they can’t control their currency anymore and that’s where the real problems start occurring.”
Cuban initially called Bitcoin (BTC) a bubble, though he turned leaf around two years ago, announcing his intention of investing in the digital currency ecosystem. He stated at the time:
“I think it’s in a bubble. I just don’t know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble.”
Donald Trump is also amongst the many oppositions that Libra is receiving. The United States President went on to bash it through his favorite medium Twitter, opposing cryptocurrencies as a whole, citing Bitcoin and Libra specifically. As per Brian Armstrong, the CEO of Coinbase his acknowledgment albeit negative publicly feeds the narrative that it is both independent of global powers and unable to be crushed by them.
Interestingly, Libra’s commercial success is higher than those of other cryptocurrencies as offering financial services through its social media services including Facebook, WhatsApp and Instagram and their billions of users, the firm can easily guarantee convenience and price competitiveness.
The regulators across the globe have shown concern over Libra’s launch ever since the projects formal announcement was made. Recently, the members of the G7 formed a task force led by France, that will look into the project. The Bank for International Settlements (BIS) also expressed concern over the disruption that might occur with big tech firms like Facebook entering the financial space, in its annual report for 2019.
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