Nobel prize-winning economist, Joseph Eugene Stiglitz, claims that “every currency is based on trust, but only a fool would trust Facebook’s Libra”
Stiglitz also notes that “in just a few short years, Facebook has earned a level of distrust that took the banking sector much longer to achieve.”
He appears to fear that Facebook’s cryptocurrency could be hospitable to a shadow economy:
The last thing we need is a new vehicle for nurturing illicit activities and laundering the proceeds, which another cryptocurrency will almost certainly turn out to be.
This guy apparently has it out for all cryptocurrency. I recently shared another blog with my commentary on his anti-crypto and more government control rhetoric in a recent article titled, “Take your anti-crypto rhetoric elsewhere.“
I prefer to believe the correct quote here would be, “Only a fool would trust the Fractional Reserve Monetary System”… but he forgets to mention that as he serves the system.
Also, as a devout Dr. Milton Friedman follower, I am always going to be skeptic towards an economist who preaches more government controls with subjective propaganda that may in fact be or not be the actual case. Stiglitz seems to believe we should go as far as to outlaw all cryptocurrencies (so he’s went on to say) because they “might” lead to some shady business deals.
I don’t know about you, but that’s simply not going to cut it in my book… Nobel Laureate or not.
In the meantime, let’s spread the good word about Crypto.✌