Libra continues to be berated by significant governments, regulators, central bankers, and even in the US Senate. The concern that hovers around the Facebook-developed cryptocurrency is that a privately-owned company like the social media giant should not have the power to introduce a new currency.
This is the general concern that Tim Cook, the head of Apple and the man who took over from the revolutionary Steve Jobs, has with Libra – although not expressly pointing the finger at the Facebook project.
Cook spoke with French news publication, Les Echos, to express his belief that the creation of currencies should be the job of the State, and not a privately-owned company.
“I deeply believe that money must remain in the hands of states. I am not comfortable with the idea that a private group creates a competing currency. A private company does not have to seek to gain power in this way,” Cooks said.
The Apple CEO also compared the power to issue money with the Defense role, which is, until now, delegated to government by citizens who vote for them at elections.
“Money, like Defense, must remain in the hands of States, it is at the heart of their mission. We elect our representatives to assume government responsibilities. Companies are not elected, they do not have to go on this ground,” Tim Cook added.
What is perplexing, from a man who is at the head of a technology company famed for its innovation, is his misunderstanding of what Libra actually is. Cook has picked up a narrative that has been spread by a few finance ministers – such as France’s Bruno Le Marie, and Germany’s Olaf Scholz.
Libra has been labeled as a threat to national currency sovereignty in many circles because of this perceived belief that Facebook is creating a brand new currency and is thus taking power away from the State. This is Cook’s belief too.
However, that is simply not the case as Libra, as has been expressed by David Marcus, who heads up the Calibre wallet. Marcus has explained that as a stablecoin, Libra will be backed by tangible fiat currency on a 1:1 ratio; thus, there will be no new money created, rather a tokenization.
Again, it seems to be that the issue is not with the creation of a cryptocurrency, or indeed a stablecoin, as there are a number of those already out there. The problem seems to be squarely directed at Facebook, attempting to be in charge of such a financial tool.