In the long run, Libra and the legacy cryptocurrencies could potentially replace ... the sovereign power of states over currency ...
Facebook says that is has no intention to overturn the current system, and its Libra consortium currently includes major payments players such as Visa and PayPal. The company is attempting to allay the concerns of both governments and established banks.
Why ... are governments in such a tizzy? Because they understand that once in place, there may be no way to prevent a sophisticated, widely adopted cryptocurrency system from evolving into something much more far-reaching.
Would that be a bad thing?
States have been the foundation of economic prosperity for the past century. The creation of regulations governing the marketplace, the launch of a global monetary system after World War II, the taming of banks and the establishment of relatively stable currencies in affluent countries—all were part of the mix.
No one would argue, however, that this system has solved all problems or that most societies are at peak prosperity. Will states and banks in their current form, or some new financial technology, lead to the next great wave of economic improvement? ...
Perhaps it is time to shift our attention from the admitted risks of cryptocurrencies to the astonishing opportunities they could create (emphasis added).
As we know, the government is hugely and disproportionately responsive to those who have the most money. We saw that in 2008. In the inimitable words of Ry Cooder, when our monetary system was on the brink of collapse, "no banker was left behind." Cartoonist Tim Eagan dramatizes the same message this way:
I do think that we are "in this life together," whether we like that or not, and that thinking that "individualistic" and "market-based" approaches to our problems will give us better results is a massive illusion. Detaching our monetary system from governmental control means that we will lose the chance, forever, to make democracy work for the ordinary people.
Not a good choice, the way I see it!
(2) - http://brattononline.com (August 14-20. 2019)