The well-known Bitcoin bear, Nouriel Roubini - AKA Dr Doom - has once again taken to Twitter to make a few digs at a cryptocurrency. Instead of Bitcoin, Roubini is targeting Facebook’s upcoming stablecoin this time. Libra was only announced yesterday but according to the economics professor, Libra is “blockchain in name only”.
Facebook Profit Mule
In addition, Roubini argues that Facebook’s cryptocurrency was only designed to grow the social network’s profits. Dr Doom even goes onto claim that the stablecoin is just a ‘monopoly scam’
It will start as a private, permissioned, not-trustless, centralized oligopolistic members-only club. So much for calling it "blockchain". Like all "enterprise DLT" it is blockchain in name only and an monopoly to extract massive seignorage from billions of users. A monopoly scam https://t.co/NritKaQODS— Nouriel Roubini (@Nouriel) June 17, 2019
The 60-year-old also warned of Facebook’s ‘ridiculous chutzpah’ designs. According to him, Facebook intends to use Libra to become the central bank of the world.
In a separate tweet, Roubini said:
“At a time when Big Tech is coming under sharp legislative scrutiny coz of serious anti-trust concerns and all govs, even the US, want to crack down on these monopolies Facebook wants to become the monopolistic Global Fed without even a bank license. What a ridiculous chutzpah!”
Before he claimed that Libra was a monopoly scam, the economist began his rant against the stablecoin by warning of its risks. This is by virtue of the fact that Libra will be linked to a basket of currencies, Dr Doom warned that there will be some risks for users based in nations that have relatively stable currencies.
He goes onto say that users shouldn’t expect to earn any interest on their balances.
“Facebook Coin will make a fortune for FB & its investors by earning interest on “float”, ie users’ balances (as funds invested in safe interest-bearing gov bills) while pay 0% on such users’ balances. Rip-off! I rather keep my money in $ fiat & earn 2.5% on safe overnight rates!”