Time for a thread 👇🏽👇🏽
These are all valid concerns and Facebook should address them.
This inclusion of so many organizations decreases the likelihood that any one organization could be nefarious in nature.
In fact, many banks have decided to create their own digital currency.
- Acting alone in creation & governance
- Using unclear language
- Leaving the door open for major issues in future
JP Morgan, Wells Fargo, and others continue to present their new digital currencies as digital dollars. In other words, each token is backed one-to-one by a US dollar.
But what are they actually doing?
Could this be because they are precluded from using the word dollar? Or do they have hidden future plans?
They are creating central banks that they exclusively control.
Every banker wishes they controlled the Fed. Now they have found a way to do it.
This is where Wall Street's plans get interesting.
1. Create digital currency
2. Back digital currency with dollars
3. Drive adoption of digital currency
4. Unpeg digital currency from dollars
5. Print digital currency at will
No one should trust Wall Street to play central banker.
Regulators should step in immediately and stop this from happening.
Any financial institution that launches a digital currency that is pegged to an underlying currency or commodity cannot be unpegged from that currency or commodity in the future.
If they have nefarious intentions, they will fight this.
And it is financial institutions, not FB, that have failed to prevent money laundering, market manipulation, and fraud in the past.
Hopefully we have learned our lesson.