Say what you like about Mark Zuck, but the fellow doesn’t lack ambition. There’s a bit of the Terminator in him, or one of those mediaeval giants that takes quivers full of arrows but keeps on coming.
It not just your innermost secrets, your lives, your loves and of course what consumer goods you buy he wants to know. The Zuck is now coming for your money. Be very afraid. It’s called Libra, it’s blockchain, and Mark is doing it
because he wants to make more money and know how you spend yours has a deep compassion for the
1.7bn people around the world without a bank account would be able to use it to make instant and nearly free international money transfers from their mobile phones
Earth calling Zuck. You may have a brain the size of a planet but has it ever occurred to you that a good number of these people don’t have a bank account because they don’t have any money? How do you fix that? Well, paying your taxes rather than spiriting the ill-gotten gains into Moneyland would help this altruistic aim more than facilitating people to spend money they don’t have, all watched over by the benevolent gaze of Facebook’s servers.
There are other companies involved, and of course Libra’s website makes much of its credentials as a not-for-profit independent company, along with all the good is will do for these good folk who are unbanked, possibly ‘cuz they don’t have anything to bank. To wit:
Reinvent money. Transform the global economy. So people everywhere can live better lives.
There’s a Youtube puffery vid for ya
There are some questionable statements delivered in that minute and a half:
Technology has improved the world around us
Not sure what Extinction rebellion would say about that. Not if you’re a London sparrow. Or a cyberbullied teen. But sure, it’s improved many things, lets move on:
So why is it simple to send these [on screen example of low-value consumer goods] anywhere, but not money? What if we made money truly global, stable, and secure
Err, that’s because there’s no United States of Earth to protect us from the goddamned strongmen that we already have and seem to be siphoning off resources into offshore tax havens? Who watches the watchers, and how to we kick the blighters out if we create such an overarching single point of failure? The problems here aren’t technical. They are human. The history of the world shows you shouldn’t put a few people in charge of power. Piss off, Zuck and your ubermensch mates. What part of No do you not understand? As for secure, with Facebook on the board that’s just not happening. I’m not even sure it’s possible at all. Every bugger has their price.
Let’s run Libra through the bullshit translator, shall we. Let’s take a look and what’s wrong with money now. Money is two things. One is a medium of interchange. If you have money, you can get people to do things for you, right now – clean my windows, fix my drains, make me and my SO a nice meal in attractive surroundings, build be a superyacht so I can big up my ego.
It’s also a claim on future human work, which is often called a ‘store of value’. For various technical reasons, ever since 1971 and arguably before then, it’s not particularly good at that. To store value these days you are usually advised to use it as a medium of interchange to buy a diversified array of other things like equities and bonds. Storing value as currency doesn’t work that well in normal times. It can work exceptionally poorly in abnormal items – Venezuela now, Argentina not so long ago, Germany in between the wars. It was pretty iffy in Britain in the 1970s 😉
Improvement is possible. Some people critique the issue of there being no anchor – once upon a time currencies were backed by gold. With crypto you could probably achieve a similar limit in the money supply, well, until quantum computing comes along and people get to forge it. But that’s technical, it’s probably solvable. There was a problem with the gold standard in an expanding postwar economy. If your money is fixed and the amount of valuable stuff in the economy it is chasing rises, you are locked into deflation, and the real value of your mortgages and bank loans goes up with time. Of course, having floating currencies lets politicians promise more than they can deliver and let a slow devaluation in the currency tax people invisibly. But given that we don’t want to pay tax I guess it’s got to come from somewhere…
OK, maybe we have gone ex-growth, environmental degradation may mean contraction and convergence. Maybe a fixed worldwide amount of money could work. But not if it’s run by Facebook.
Iffen it ain’t broke don’t fix it.
Banks use ancient IT systems, but I can’t recall the last time a load of money just disappeared. Challenger banks are making the user interface better. Western consumers don’t need easier payment systems and micropayments. really they don’t. Consumer debt is already bad enough
One of the easiest wins you can have with spending is simply to insert a wait loop. want to buy something that’s over £50 and isn’t a matter of health and safety? Stick it on a piece of paper with the date, and wait a week. If you still want it a week later, go buy it. It’s amazing how many want-it-now purchases can be canned.
Paying for something really isn’t that hard these days, assuming you have the money. We don’t need a totally new edifice run by tech giants to fix something that just ain’t broke in that way.
I’m not saying that money can’t be improved. But let’s think long and hard about the requirements capture, the social ramifications and how we kick out abusers of power and grifters before we build a system because money attracts bad sorts like shit attracts flies. Before we have a Global Currency of Earth let’s have a United States of Earth first, eh? Currency unions are historically rife with problems – ask the Greeks how that’s going over a small area with closer economic convergence that Earth.
Libra. Just say no, if only to keep Mark Zuckerberg out of your payment history. He knows far too much about you as it is! One of the most scary bits in the Grauniad article is the kicker at the end.
Facebook claims financial transactions will remain siloed from social media activity and that user ad profiles will not be based on Libra habits
Yeah, right. And I am the King of Spain.