Libra is a Bad Move for Facebook

The way we structure money and payments is a question for democratic institutions, not technology companies.

On Tuesday, Facebook, in partnership with a surfeit of other large and powerful corporations, including Uber, Spotify, PayPal and VISA, announced that it would lead the effort to create a new global currency called Libra. “We believe,” says the organization that will govern the currency, “that the world needs a global, digitally native currency that brings together the attributes of the world’s best currencies: stability, low inflation, wide global acceptance and fungibility.”

As far as I can tell, Facebook aims to build a new payments and currency system using blockchain technology. Facebook is starting a subsidiary, Calibra, to “provide financial services” to individuals and businesses, including saving, spending and sending money. The actual standards for the currency will be managed by a nonprofit in Switzerland called the Libra Association. The currency will have its own central bank known as the Libra Reserve, and the board will be the committee of corporations that helped set it up.

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