By CCN Markets: Facebook’s Libra cryptocurrency isn’t getting any love from CNBC host Joe Kernen, better known on Crypto Twitter as “Bitcoin Joe.”
Reacting to a report indicating that founding members of the Libra Association had developed cold feet after the pushback the cryptocurrency has received, the recent Bitcoin convert stated that he has never liked the Facebook coin “one bit.”
— Squawk Box (@SquawkCNBC) August 23, 2019
Kernen then outlined five reasons why.
1. Libra is centralized
“I don’t like it [Libra] ‘cause it’s centralized” was Kernen’s first shot.
Is he right?
Despite the decentralization phrase and its variants being mentioned ten times in the Libra whitepaper, there has been widespread skepticism regarding this. Libra’s cryptocurrency credentials have consequently been questioned, with Facebook being viewed as having central control over the cryptocurrency.
Is Libra really a cryptocurrency? Facebook’s new money, explained by @Gmvolpi. A new WIRED Explains video.
— WIRED UK (@WiredUK) August 14, 2019
The Facebook coin has even been described as a “banking venture dressed up in cryptography.”
2. The Facebook brand is tainted
Another reason Kernen cited for his anti-Libra stance was the company backing the cryptocurrency project. Without mincing words, Kernen said, “I don’t like it ‘cause it’s Facebook.”
When Libra’s co-creator David Marcus testified before the U.S. Congress last month, its parent brand of Facebook was constantly cited as a cause of concern.
— POLITICO Pro (@POLITICOPro) July 16, 2019
3. Monetary policy headaches
“I don’t like it ’cause … everybody gets to keep the float” was Kernen’s third reason for his anti-Libra stance.
While Kernen’s rationale was not immediately clear, economists have warned that because everyone with an account will be able to adopt Libra, this could make the use of monetary policy tools to control liquidity and inflation impossible.
4. It’s a banker’s coin
The CNBC anchor also stated that the cryptocurrency would not be adding any value to what is already available in the financial sector: “I don’t like it ‘cause it’s like a debit card.”
Bitcoin’s recent convert is right, and this point is conveyed best by listing off Facebook’s partners in the project – the likes of Mastercard, Visa, and PayPal.
5. Libra has no inherent value
The Bitcoin broadcaster’s fifth attack relates to Libra’s fiat currency peg.
“I don’t like it ‘cause it doesn’t have any inherent value.” He contrasted this with antiques, gold, and Bitcoin – which he said had “unforgeable value.”
But surely Libra must have a redeeming quality in Kernen’s view?
He concluded: “I don’t like anything about it! Nothing.”